Question 1

Late movers face greater technological and market uncertainties.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a late-mover advantage?

Accepted Answer

A)  Pre-emption of scarce resources 
B)  Fewer technological and market uncertainties 
C)  Proprietary and technological leadership 
D)  Good relationships with key stakeholders such as governments 
A)  Pre-emption of scarce resources 
B)  Fewer technological and market uncertainties 
C)  Proprietary and technological leadership 
D)  Good relationships with key stakeholders such as governments

Question 3

An acquisition is an example of a wholly owned subsidiary.

Accepted Answer

A) True 
 B)False

Question 4

Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.

Accepted Answer

A) True 
 B)False

Question 5

_____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.

Accepted Answer

A)  Indirect exports 
B)  Direct exports 
C)  Turnkey projects 
D)  Acquisitions 
A)  Indirect exports 
B)  Direct exports 
C)  Turnkey projects 
D)  Acquisitions

Question 6

Greenfield operations are a type of wholly owned subsidiary that does not require any FDI.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a disadvantage of licensing and franchising?

Accepted Answer

A)  Little control over marketing 
B)  High development costs 
C)  High risk in overseas expansion 
D)  Creation of a monopoly 
A)  Little control over marketing 
B)  High development costs 
C)  High risk in overseas expansion 
D)  Creation of a monopoly

Question 8

Companies with market-seeking strategic goals search for _____.

Accepted Answer

A)  abundance of strong market demand and customers willing to pay 
B)  economies of scale and abundance of low cost factors 
C)  abundance of innovative individuals, firms, and universities 
D)  particular foreign locations where the required resources are found 
A)  abundance of strong market demand and customers willing to pay 
B)  economies of scale and abundance of low cost factors 
C)  abundance of innovative individuals, firms, and universities 
D)  particular foreign locations where the required resources are found

Question 9

Agglomeration explains why certain cities and regions can attract businesses even in the absence of obvious geographic advantages.

Accepted Answer

A) True 
 B)False

Question 10

What are the two schools of thought that have emerged concerning cultural distances?

Accepted Answer

Cultural distance is the difference betw

Question 11

Which of the following is true of indirect exports?

Accepted Answer

A)  They typically provoke protectionism, potentially triggering antidumping actions. 
B)  They treat foreign demand as an extension of domestic demand. 
C)  They export through domestically based export intermediaries. 
D)  They do not enjoy the economies of scale similar to direct exports. 
A)  They typically provoke protectionism, potentially triggering antidumping actions. 
B)  They treat foreign demand as an extension of domestic demand. 
C)  They export through domestically based export intermediaries. 
D)  They do not enjoy the economies of scale similar to direct exports.

Question 12

Greenfield operations and acquisitions have complete equity and operational control.

Accepted Answer

A) True 
 B)False

Question 13

The non-equity mode of indirect exports has better control over distribution than direct exports.

Accepted Answer

A) True 
 B)False

Question 14

A greenfield operation refers to _____.

Accepted Answer

A)  a new corporate entity created and jointly owned by two or more parent companies 
B)  a wholly owned subsidiary created by building a new factory and offices from scratch 
C)  a wholly owned subsidiary created by acquisition 
D)  an outsourcing agreement in R&D between firms 
A)  a new corporate entity created and jointly owned by two or more parent companies 
B)  a wholly owned subsidiary created by building a new factory and offices from scratch 
C)  a wholly owned subsidiary created by acquisition 
D)  an outsourcing agreement in R&D between firms

Question 15

Describe how strategic goals drive the location of foreign entities.

Accepted Answer

Favorable locations in certain countries

Question 16

The preemption of scarce resources is a first-mover advantage.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a non-equity mode of entry?

Accepted Answer

A)  Acquisitions 
B)  Joint ventures 
C)  Turnkey projects 
D)  Green-fields 
A)  Acquisitions 
B)  Joint ventures 
C)  Turnkey projects 
D)  Green-fields

Question 18

Co-marketing refers to _____.

Accepted Answer

A)  a project in which clients pay contractors to market and distribute the product/service 
B)  outsourcing agreements in marketing between firms 
C)  efforts among a number of firms to jointly market their products and services 
D)  selling the rights to intellectual property to another firm for a royalty fee 
A)  a project in which clients pay contractors to market and distribute the product/service 
B)  outsourcing agreements in marketing between firms 
C)  efforts among a number of firms to jointly market their products and services 
D)  selling the rights to intellectual property to another firm for a royalty fee

Late movers face greater technological and market uncertainties.

Which of the following is a late-mover advantage?

An acquisition is an example of a wholly owned subsidiary.

Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.

_____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.

Greenfield operations are a type of wholly owned subsidiary that does not require any FDI.

Which of the following is a disadvantage of licensing and franchising?

Companies with market-seeking strategic goals search for _____.

Agglomeration explains why certain cities and regions can attract businesses even in the absence of obvious geographic advantages.

What are the two schools of thought that have emerged concerning cultural distances?

Which of the following is true of indirect exports?

Greenfield operations and acquisitions have complete equity and operational control.

The non-equity mode of indirect exports has better control over distribution than direct exports.

A greenfield operation refers to _____.

Describe how strategic goals drive the location of foreign entities.

The preemption of scarce resources is a first-mover advantage.

Which of the following is a non-equity mode of entry?

Co-marketing refers to _____.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters

Exam 10: Entering Foreign Markets

Late movers face greater technological and market uncertainties.

Which of the following is a late-mover advantage?

An acquisition is an example of a wholly owned subsidiary.

Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.

_____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.

Greenfield operations are a type of wholly owned subsidiary that does not require any FDI.

Which of the following is a disadvantage of licensing and franchising?

Companies with market-seeking strategic goals search for _____.

Agglomeration explains why certain cities and regions can attract businesses even in the absence of obvious geographic advantages.

What are the two schools of thought that have emerged concerning cultural distances?

Which of the following is true of indirect exports?

Greenfield operations and acquisitions have complete equity and operational control.

The non-equity mode of indirect exports has better control over distribution than direct exports.

A greenfield operation refers to _____.

Describe how strategic goals drive the location of foreign entities.

The preemption of scarce resources is a first-mover advantage.

Which of the following is a non-equity mode of entry?

Co-marketing refers to _____.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters