Exam 15: Entry Strategy and Strategic Alliances

Acquisitions rarely produce disappointing results.

Which of the following is a disadvantage of licensing?

To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own organization.

The choice of which international markets to enter should be driven by an assessment of absolute short-run growth and profit potential.

A ________ is more likely to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.

In many countries, political considerations make ________ the only feasible entry mode.

________ are the advantages associated with entering a market early.

According to the ________, top managers typically overestimate their ability to create value from an acquisition.

To increase the potential for a successful acquisition, a firm should

If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ

Compare and contrast licensing agreements and franchising agreements.

________ is pursued primarily by manufacturing firms and ________ is employed primarily by service firms.

In a ____, the firm owns 100 percent of the stock.

In ________, the contractor agrees to handle every detail of the project for a foreign client.

Which of the following statements about small-scale entry is true?

Consider why a firm should enter a market via a wholly owned subsidiary. What are the advantages and disadvantages of this type of strategy?

Which of the following is an advantage of franchising?

Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion.

Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises.

Gadgets, Inc., wants to enter a foreign market on a small scale. This will allow it to learn about the market while limiting the firm's exposure to that market.