Exam 9: Market Entry and Expansion

When two or more organizations collaborate for more than a transitory period and share assets, risks, and profits, this is known as a:

Which of the following are defined as enterprises which own or control production or service facilities outside the country in which they are based?

One big motivator for a company to begin international marketing of products is slumping domestic sales.

Other external change agents include all but:

Corporations primarily in search of better opportunities to enter and expand within markets are called opportunity seekers.

Through their investment, multinational corporations bring economic vitality and jobs to their host countries and often pay higher wages than the average domestically-oriented firms.

Non-financial incentives can consist of guaranteed government purchases, special protection from competition through tariffs, import quotas and local content requirements, and ____________.

Which of the following is not a reason joint ventures are disbanded?

A firm with a competitive edge in terms of technological advantage usually succeeds in the international market because no other firms will be able to know about the technology and will not be able to adequately compete due to this lack of information

Which of the following is not a service firm that might follow a multinational firm abroad?

Tax measures designed to serve as an attraction to the foreign investor are called physical incentives.

Which of the following is one reason that a multinational company may resist the temptation to wholly own its company in a foreign market?

Which of following terms is exemplified in this statement: The United States is "closer" to Canada than it is to Mexico because the U.S. and Canada have similar cultures.

Special tax measures designed to serve as an attraction for foreign investment are called:

Those domestic firms that specialize in performing international services as commission representatives or distributors for several other firms are called:

A major cause of the increase in foreign direct investment is government incentives.

A major concern of both governments and citizens is the concept of transfer of profit from the new foreign market back to the domestic country. What is the term used for this transfer?

Derived demand is the result of the move abroad by established customers.

Portfolio investment is a primary concern to the international financial community.

When a parent company grants another, independent entity the right to do business in a specified manner, including the right to sell the parent company's products and use its name, production, preparation, and marketing techniques, this is called: