Question 1

What is the key difference between licensing and franchising?

Accepted Answer

A)  Licensing involves the payment of a fee for the use of a firm's intellectual property, whereas franchising provides the right to undertake business in a specified manner in return for a royalty payment. 
B)  Licensing involves the arrangements for manufacturing a firm's products, whereas franchising involves arrangements for marketing the products. 
C)  Licensing involves a payment for the use of a firm's intellectual property, whereas franchising deals with the operating details of how the intellectual property is used by another company. 
D)  Licensing involves arrangements for producing and marketing a brand, whereas franchising involves arrangements for distributing the brand. 
E)  There is no real difference between licensing and franchising. 
A)  Licensing involves the payment of a fee for the use of a firm's intellectual property, whereas franchising provides the right to undertake business in a specified manner in return for a royalty payment. 
B)  Licensing involves the arrangements for manufacturing a firm's products, whereas franchising involves arrangements for marketing the products. 
C)  Licensing involves a payment for the use of a firm's intellectual property, whereas franchising deals with the operating details of how the intellectual property is used by another company. 
D)  Licensing involves arrangements for producing and marketing a brand, whereas franchising involves arrangements for distributing the brand. 
E)  There is no real difference between licensing and franchising. A

Question 2

Collaborative arrangements between firms that are aimed at exchanging or sharing some value-creating business activities are generally referred to as:

Accepted Answer

A)  strategic alliances. 
B)  countertrade. 
C)  operational networks. 
D)  mergers or acquisitions. 
E)  franchising arrangements. 
A)  strategic alliances. 
B)  countertrade. 
C)  operational networks. 
D)  mergers or acquisitions. 
E)  franchising arrangements. A

Question 3

Manufacturing-based entry is often referred to as direct financial investment (DFI).

Accepted Answer

A) True 
 B)False  False

Question 4

According to Williamson, high-control modes of entering foreign markets should be chosen when the firm possesses transaction-specific assets.

Accepted Answer

A) True 
 B)False

Question 5

Grouping countries on the basis of macroeconomic potential will ensure market potential.

Accepted Answer

A) True 
 B)False

Question 6

List additional factors that need to be weighed when considering decisions requiring foreign direct investment (FDI).

Accepted Answer

-Long-term prospects for growth and prof

Question 7

Using an agent that is based in the home country to get a product into a foreign market is an example of:

Accepted Answer

A)  a greenfield operation. 
B)  direct exporting. 
C)  franchising. 
D)  indirect exporting. 
E)  strategic alliances. 
A)  a greenfield operation. 
B)  direct exporting. 
C)  franchising. 
D)  indirect exporting. 
E)  strategic alliances.

Question 8

A greenfield operation occurs where a firm decides to build its own manufacturing plant overseas using its own funds.

Accepted Answer

A) True 
 B)False

Question 9

Countertrade between firms is driven by:

Accepted Answer

A)  the desire to reduce transaction costs by building up reciprocity. 
B)  the desire for technology. 
C)  declining foreign exchange reserves in developing countries largely due to adverse long-term movement in the terms of trade. 
D)  all of the above. 
E)  options A and C only. 
A)  the desire to reduce transaction costs by building up reciprocity. 
B)  the desire for technology. 
C)  declining foreign exchange reserves in developing countries largely due to adverse long-term movement in the terms of trade. 
D)  all of the above. 
E)  options A and C only.

Question 10

Environmentalism is an indirect trade barrier that is growing in importance.

Accepted Answer

A) True 
 B)False

Question 11

There are a number of key factors that can influence a firm's level of success in an overseas market. These will include:

Accepted Answer

A)  the level of overseas government regulation. 
B)  the level of domestic government regulation. 
C)  the extent of prior international experience of the firm's senior management. 
D)  all of the above. 
E)  options B and C only. 
A)  the level of overseas government regulation. 
B)  the level of domestic government regulation. 
C)  the extent of prior international experience of the firm's senior management. 
D)  all of the above. 
E)  options B and C only.

Question 12

The fifth stage of the screening process involves ________ markets because of ________ trade-offs.

Accepted Answer

A)  expanding, internal 
B)  eliminating, internal 
C)  eliminating, external 
D)  expanding, internal. 
E)  none of the above 
A)  expanding, internal 
B)  eliminating, internal 
C)  eliminating, external 
D)  expanding, internal. 
E)  none of the above

Question 13

Overseas markets can be entered using either a concentrated or diversified approach.

Accepted Answer

A) True 
 B)False

Question 14

Due to increasingly sophisticated e-marketing tools, a cyber-marketplace has developed around internet access and consumption needs.

Accepted Answer

A) True 
 B)False

Question 15

The three basic methods of market entry to overseas markets are:

Accepted Answer

A)  local-based, export-based and manufacturing-based. 
B)  export-based, franchise-based and manufacturing-based. 
C)  export-based, manufacturing-based and relationship-based. 
D)  indirect-based, direct-based and agent-based. 
E)  local-based, international-based and global-based. 
A)  local-based, export-based and manufacturing-based. 
B)  export-based, franchise-based and manufacturing-based. 
C)  export-based, manufacturing-based and relationship-based. 
D)  indirect-based, direct-based and agent-based. 
E)  local-based, international-based and global-based.

Question 16

In the implementation of a direct exporting approach, an export agent working on behalf of a producer will sell the producer's goods in the overseas market and will receive a:

Accepted Answer

A)  salary as a direct employee of the producer. 
B)  commission on the sale after taking ownership of the goods. 
C)  monthly or annual retainer without taking ownership of the goods. 
D)  monthly or annual retainer and take ownership of the goods. 
E)  commission on the sale without taking ownership of the goods. 
A)  salary as a direct employee of the producer. 
B)  commission on the sale after taking ownership of the goods. 
C)  monthly or annual retainer without taking ownership of the goods. 
D)  monthly or annual retainer and take ownership of the goods. 
E)  commission on the sale without taking ownership of the goods.

Question 17

Name the five stages of the progressive screening of the overseas market selection process.

Accepted Answer

-Domestic regulations and mana

Question 18

Strategic alliances are most likely to be formed when organisations can see that there will be a mutual benefit. Factors driving this move are that firms are:

Accepted Answer

A)  moving into new markets. 
B)  developing new ideas. 
C)  filling knowledge gaps. 
D)  all of the above. 
E)  options A and C only. 
A)  moving into new markets. 
B)  developing new ideas. 
C)  filling knowledge gaps. 
D)  all of the above. 
E)  options A and C only.

Question 19

Countertrade involves the linking of an import and an export transaction in a conditional manner. Discuss the drivers of countertrade and outline the various forms it can follow.

Accepted Answer

Drivers of countertrade:
-Declining fore

Question 20

Indirect exporting can include:

Accepted Answer

A)  franchising. 
B)  cooperative exporting. 
C)  piggybacking. 
D)  licensing. 
E)  options B and C only. 
A)  franchising. 
B)  cooperative exporting. 
C)  piggybacking. 
D)  licensing. 
E)  options B and C only.

What is the key difference between licensing and franchising?

Collaborative arrangements between firms that are aimed at exchanging or sharing some value-creating business activities are generally referred to as:

Manufacturing-based entry is often referred to as direct financial investment (DFI).

According to Williamson, high-control modes of entering foreign markets should be chosen when the firm possesses transaction-specific assets.

Grouping countries on the basis of macroeconomic potential will ensure market potential.

List additional factors that need to be weighed when considering decisions requiring foreign direct investment (FDI).

Using an agent that is based in the home country to get a product into a foreign market is an example of:

A greenfield operation occurs where a firm decides to build its own manufacturing plant overseas using its own funds.

Countertrade between firms is driven by:

Environmentalism is an indirect trade barrier that is growing in importance.

There are a number of key factors that can influence a firm's level of success in an overseas market. These will include:

The fifth stage of the screening process involves markets because of trade-offs.

Overseas markets can be entered using either a concentrated or diversified approach.

Due to increasingly sophisticated e-marketing tools, a cyber-marketplace has developed around internet access and consumption needs.

The three basic methods of market entry to overseas markets are:

In the implementation of a direct exporting approach, an export agent working on behalf of a producer will sell the producer's goods in the overseas market and will receive a:

Name the five stages of the progressive screening of the overseas market selection process.

Strategic alliances are most likely to be formed when organisations can see that there will be a mutual benefit. Factors driving this move are that firms are:

Countertrade involves the linking of an import and an export transaction in a conditional manner. Discuss the drivers of countertrade and outline the various forms it can follow.

Indirect exporting can include:

Rationale for International Marketing

Avoiding the Pitfalls of the International Political and Legal Environment

Catering for the Social and Cultural Environment of International Marketing

Technology Change and International Marketing

Contemporary Environmental Variables in International Marketing

Research in International Markets

International Competitive Strategy

Internationalization, Relationships and Networks

Globalization

Planning for Effective International Marketing

Modifying Products for International Markets

International Pricing for Profit

Promotion in International Marketing

Effective International Distribution

Marketing Services and Projects Overseas

International Marketing in the Decade Ahead

Filters

Exam 8: International Market Selection and Entry

What is the key difference between licensing and franchising?

Collaborative arrangements between firms that are aimed at exchanging or sharing some value-creating business activities are generally referred to as:

Manufacturing-based entry is often referred to as direct financial investment (DFI).

According to Williamson, high-control modes of entering foreign markets should be chosen when the firm possesses transaction-specific assets.

Grouping countries on the basis of macroeconomic potential will ensure market potential.

List additional factors that need to be weighed when considering decisions requiring foreign direct investment (FDI).

Using an agent that is based in the home country to get a product into a foreign market is an example of:

A greenfield operation occurs where a firm decides to build its own manufacturing plant overseas using its own funds.

Countertrade between firms is driven by:

Environmentalism is an indirect trade barrier that is growing in importance.

There are a number of key factors that can influence a firm's level of success in an overseas market. These will include:

The fifth stage of the screening process involves ________ markets because of ________ trade-offs.

Overseas markets can be entered using either a concentrated or diversified approach.

Due to increasingly sophisticated e-marketing tools, a cyber-marketplace has developed around internet access and consumption needs.

The three basic methods of market entry to overseas markets are:

In the implementation of a direct exporting approach, an export agent working on behalf of a producer will sell the producer's goods in the overseas market and will receive a:

Name the five stages of the progressive screening of the overseas market selection process.

Strategic alliances are most likely to be formed when organisations can see that there will be a mutual benefit. Factors driving this move are that firms are:

Countertrade involves the linking of an import and an export transaction in a conditional manner. Discuss the drivers of countertrade and outline the various forms it can follow.

Indirect exporting can include:

Rationale for International Marketing

Avoiding the Pitfalls of the International Political and Legal Environment

Catering for the Social and Cultural Environment of International Marketing

Technology Change and International Marketing

Contemporary Environmental Variables in International Marketing

Research in International Markets

International Competitive Strategy

Internationalization, Relationships and Networks

Globalization

Planning for Effective International Marketing

Modifying Products for International Markets

International Pricing for Profit

Promotion in International Marketing

Effective International Distribution

Marketing Services and Projects Overseas

International Marketing in the Decade Ahead

Filters

The fifth stage of the screening process involves markets because of trade-offs.