Exam 13: Entry and Expansion

Nestle and General Mills had an agreement whereby Honey Nut Cheerios and Golden Grahams were made in General Mill's U.S.plants and shipped in bulk to Europe for packaging by Nestle.Such an arrangement is called ________.

The equity alliances---minority ownership,joint ventures,and consortia---feature the most extensive commitment and shared control.

What are the two ways firms can be involved in exporting and importing?

An agreement in which one firm permits another to use its intellectual property in exchange for compensation is known as a ________.

The result of 1982 legislation to improve export performance of small and medium-sized firms,the ________ allows businesses to band together to export or offer export services.

Firms that are most successful in international business are usually motivated by ________ factors.

A special form of licensing is ________ licensing,which provides someone the right to use an established brand symbol in exchange for payment.

Firms that specialize in performing international business services as commission representatives or as distributors are known as ________.

What is the major proactive motivation to firms for international business?

International success requires the firm to be a risk-taker and firms must realize that satisfactory international performance takes time.

A reciprocal arrangement whereby each partner provides the other access to its markets for a product is referred to as ________.

A reciprocal arrangement whereby each partner provides the other access to its markets for a product is called ________.

The first requirement of interfirm cooperation is ________.

The central driver of internationalization is the level of profits to be gained.

XYZ Computer Company has been established as an international from its inception.It uses e-business on a regular basis to reach out to a large number of customers across the globe.XYZ Computer Company is a(n)________ firm.

According to the Focus on Entrepreneurship box in chapter 13,Dan Kelley,CEO of Tierra Dynamic Company,boosted international sales from zero to 25 percent of annual revenues.Of the following,what was most important in the international success of Tierra Dynamic Company?

Because they share a common business objective,Texas Instruments has reported agreements with companies such as IBM,Alcatel,and L.M.Ericsson.This is an examples of a ________.

An international business alternative in which the firm sells its expertise in running a company while avoiding the risk or benefit of ownership is known as a(n)________.

Best Candy Company is located in Italy within 40 miles of the French border.The Italian company often does business with the French but does not perceive itself as going abroad since France is a neighboring country.Which of the following major reactive motivations is playing a role in the international activities of Best Candy Company?

Competitive pressures,overproduction,and excess capacity are all reactive motivations for a firm to go international.