Exam 9: Market Entry and Expansion

In small and medium-sized firms, the initial decision to export is usually made by the president, with substantial input provided by:

Multinational corporations are defined by the United Nations as those enterprises which own or control production or service facilities outside the country in which they are based.

Financial incentives are defined as:

The primary internal change agent in a company is often a long-time employee who is not management-level.

A joint venture is a collaboration of two or more organizations for more than a transitory period.

This concept originated with European trading houses before being formalized by the monarchs.

The practice of franchising originated in Bavaria.

In a situation where the supplier brings together a package of skills that will provide an integrated service to the client without incurring the risk and benefit of ownership, this is called:

Which United States department of government is actively involved in encouraging exports?

The most famous trading companies are the sogoshosha of Japan.

Export management companies and trading companies are firms that assist other firms in marketing products abroad. What are these international broker-like companies called?

When an international company owns 100 percent of the multinational firm, this is considered:

As a result of overproduction, companies historically would move inventories to foreign markets during periods of domestic downturn. This practice was beneficial because of the lag time between domestic and foreign markets. What was this practice called?

Efficiency seekers attempt to obtain the most economic sources of production.

List and describe the key corporate export stages.

Government consortia is a form of cooperation which takes place at the industry level and is typically characterized by government support or even subsidization.

If a company reacts to a saturated domestic market by entering the international market in order to combat declining domestic sales, this tends to shorten the lifecycle of the product.

The flow of imports that foreign direct investors often bring with them affect the host country in a variety of ways. Which of the following is a negative effect of foreign direct investment by multinational companies?

Proactive firms go international because they want to, while reactive ones go international because they have to.

Only large firms are capable of carrying out global market expansion through foreign direct investment of management contracts.