Question 1

Joint venture arrangements are popular because

Accepted Answer

A)  They require very little investments 
B)  The parent company does not need to add any more personnel 
C)  Risks are shared in joint venture arrangements 
D)  They are easy to set up 
A)  They require very little investments 
B)  The parent company does not need to add any more personnel 
C)  Risks are shared in joint venture arrangements 
D)  They are easy to set up C

Question 2

Exporting is a complex and difficult entry mode.

Accepted Answer

A) True 
 B)False  False

Question 3

Wholly owned subsidiaries are best suited for

Accepted Answer

A)  Small companies 
B)  Medium-size companies 
C)  For large companies 
D)  For publicly held companies 
A)  Small companies 
B)  Medium-size companies 
C)  For large companies 
D)  For publicly held companies C

Question 4

Contracts and agreements in exporting are drawn to protect the identity of the shipper.

Accepted Answer

A) True 
 B)False

Question 5

Shipper's export declaration is a document that contains

Accepted Answer

A)  Name of the capital of the host country 
B)  Name of the capital of the home country 
C)  Transportation details 
D)  The name of the dispatcher of the transportation company 
A)  Name of the capital of the host country 
B)  Name of the capital of the home country 
C)  Transportation details 
D)  The name of the dispatcher of the transportation company

Question 6

Exports are goods and services produced by a company in one country and sold in the same country.

Accepted Answer

A) True 
 B)False

Question 7

The main advantage of joint ventures is sharing in the profits among the partners.

Accepted Answer

A) True 
 B)False

Question 8

One disadvantage of licensing arrangements is the high investments it requires to enter the foreign market.

Accepted Answer

A) True 
 B)False

Question 9

Foreign governments prefer international companies to fully own their operations.

Accepted Answer

A) True 
 B)False

Question 10

International companies establish wholly owned subsidiaries because

Accepted Answer

A)  It is easy to organize 
B)  Does not require too much of government approvals 
C)  Is a good way to circumvent host country regulations 
D)  It offers maximum profit potential 
A)  It is easy to organize 
B)  Does not require too much of government approvals 
C)  Is a good way to circumvent host country regulations 
D)  It offers maximum profit potential

Question 11

The most complex and high risk investment is owning a wholly owned subsidiary.

Accepted Answer

A) True 
 B)False

Question 12

The disadvantages of joint ventures are

Accepted Answer

A)  The lack of control over operations as well as over intellectual property 
B)  The host government discourages joint ventures 
C)  It takes more time to understand the local market 
D)  Forces expatriate staff to learn the local language 
A)  The lack of control over operations as well as over intellectual property 
B)  The host government discourages joint ventures 
C)  It takes more time to understand the local market 
D)  Forces expatriate staff to learn the local language

Question 13

The key advantages of wholly owned subsidiaries are

Accepted Answer

A)  Full control of its operations 
B)  It is easy to obtain host government approval 
C)  Reduces financial risk 
D)  Require minimal additional staff 
A)  Full control of its operations 
B)  It is easy to obtain host government approval 
C)  Reduces financial risk 
D)  Require minimal additional staff

Question 14

Compare the four entry modes. Does any one appear to have an advantage over the others?

Accepted Answer

The answer of Compare the four entry modes. Does any...

Question 15

Collaborative arrangements include licensing, franchising, and joint ventures.

Accepted Answer

A) True 
 B)False

Question 16

For international companies, exports, joint ventures and wholly owned subsidiaries are the common modes of entry into foreign markets

Accepted Answer

A) True 
 B)False

Question 17

The disadvantages of wholly owned subsidiaries are

Accepted Answer

A)  The investment requirements are very high 
B)  Limits market expansion opportunities 
C)  Likely to loose ownership of intellectual property 
D)  Lacks control of foreign operations 
A)  The investment requirements are very high 
B)  Limits market expansion opportunities 
C)  Likely to loose ownership of intellectual property 
D)  Lacks control of foreign operations

Question 18

In selecting a particular type of entry into a foreign market, some of the external factors that might enter into the decision process are market size, political stability, and regulations.

Accepted Answer

A) True 
 B)False

Question 19

Advantages of licensing are

Accepted Answer

A)  It is a quick way to enter foreign markets with minimal effort on the part of licensor 
B)  Requires very little paperwork and does not require government approvals 
C)  Lessens travel time and costs 
D)  There is no need for transportation and logistical support 
A)  It is a quick way to enter foreign markets with minimal effort on the part of licensor 
B)  Requires very little paperwork and does not require government approvals 
C)  Lessens travel time and costs 
D)  There is no need for transportation and logistical support

Question 20

Certificate of origin is similar to a bill of lading and is requested by an importer.

Accepted Answer

A) True 
 B)False

Joint venture arrangements are popular because

Exporting is a complex and difficult entry mode.

Wholly owned subsidiaries are best suited for

Contracts and agreements in exporting are drawn to protect the identity of the shipper.

Shipper's export declaration is a document that contains

Exports are goods and services produced by a company in one country and sold in the same country.

The main advantage of joint ventures is sharing in the profits among the partners.

One disadvantage of licensing arrangements is the high investments it requires to enter the foreign market.

Foreign governments prefer international companies to fully own their operations.

International companies establish wholly owned subsidiaries because

The most complex and high risk investment is owning a wholly owned subsidiary.

The disadvantages of joint ventures are

The key advantages of wholly owned subsidiaries are

Compare the four entry modes. Does any one appear to have an advantage over the others?

Collaborative arrangements include licensing, franchising, and joint ventures.

For international companies, exports, joint ventures and wholly owned subsidiaries are the common modes of entry into foreign markets

The disadvantages of wholly owned subsidiaries are

In selecting a particular type of entry into a foreign market, some of the external factors that might enter into the decision process are market size, political stability, and regulations.

Advantages of licensing are

Certificate of origin is similar to a bill of lading and is requested by an importer.

Introduction and Overview

International Business Environment-Culture

Economic and Other Related Environmental Variables

The Political and Legal Environment

International Trade and Foreign Direct Investments

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Financial Management

International Accounting

Filters

Exam 6: Entry Strategies

Joint venture arrangements are popular because

Exporting is a complex and difficult entry mode.

Wholly owned subsidiaries are best suited for

Contracts and agreements in exporting are drawn to protect the identity of the shipper.

Shipper's export declaration is a document that contains

Exports are goods and services produced by a company in one country and sold in the same country.

The main advantage of joint ventures is sharing in the profits among the partners.

One disadvantage of licensing arrangements is the high investments it requires to enter the foreign market.

Foreign governments prefer international companies to fully own their operations.

International companies establish wholly owned subsidiaries because

The most complex and high risk investment is owning a wholly owned subsidiary.

The disadvantages of joint ventures are

The key advantages of wholly owned subsidiaries are

Compare the four entry modes. Does any one appear to have an advantage over the others?

Collaborative arrangements include licensing, franchising, and joint ventures.

For international companies, exports, joint ventures and wholly owned subsidiaries are the common modes of entry into foreign markets

The disadvantages of wholly owned subsidiaries are

In selecting a particular type of entry into a foreign market, some of the external factors that might enter into the decision process are market size, political stability, and regulations.

Advantages of licensing are

Certificate of origin is similar to a bill of lading and is requested by an importer.

Introduction and Overview

International Business Environment-Culture

Economic and Other Related Environmental Variables

The Political and Legal Environment

International Trade and Foreign Direct Investments

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Financial Management

International Accounting

Filters