Exam 15: Entry Strategy and Strategic Alliances

________ refers to the building of interpersonal relationships between the firms' managers in a strategic alliance.

A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary.

The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country.

A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with

Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. This is an example of

The main advantage of ________ is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Firms engaging in a ________ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems.

An advantage of forming a strategic alliance is that it helps firms

If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose

Early entrants to a market that are able to create switching costs that tie customers into their products or services are capitalizing on

Johan's firm is considering entering a country where there are no incumbent competitors to be acquired. Its best option is likely to be a greenfield venture.