Exam 15: Entry Strategy and Strategic Alliances

Define licensing agreements. What are the advantages of this mode of international expansion?

What are the two methods of entering foreign marketing using a wholly owned subsidiary?

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

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

First-mover advantages are the advantages associated with entering a market early.

A wholly owned subsidiary is appropriate when:

Switching costs:

Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

By its very nature, licensing increases a firm's ability to utilize a coordinated strategy.

What is intangible property? How can intangible property be protected in a licensing agreement?

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

The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition.

Explain the relationship between first-mover disadvantages and pioneering costs.

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

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

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.

Draw a distinction between firms based on their core competency.

The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as ____.

Franchising enables a firm to quickly build a global presence.

Discuss the three advantages of acquiring an enterprise in a target market.