Exam 10: Entering Foreign Markets

Which of the following is a benefit of large-scale entries? 

Which of the following is an equity mode of entry? 

_____ refers to the amount of resources committed to entering a foreign market.

Industrial parks refer to the clustering of economic activities in certain locations.

Which of the following is an advantage of R&D contracts? 

An advantage of joint ventures is _____.

The scale of entry refers to the amount of resources committed to entering a foreign market.

Market-seeking firms go to countries that have a strong demand for their products and services.

A disadvantage of licensing is high development costs.

Greenfield operations are similar to acquisitions in that they are both examples of _____.

According to the stage model,firms will enter culturally distant countries for their first internationalization.

Location-specific advantages never change and only tend to grow.

Co-marketing has the ability to reach more customers but with limited control and coordination.

The resource-based view argues that foreign firms need to deploy overwhelming resources and capabilities to offset their liability of foreignness.

A(n) _____ is a non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.

Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries.This is a counter example of _____.

Define a wholly owned subsidiary (WOS).What are the two primary means to set up a WOS?

The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.

An advantage of joint ventures is the shared costs,risks,and profits.

Non-equity modes do not require the establishment of independent organizations overseas.