Exam 8: Entering Global Markets

Bernie is poring over data accumulated to fine-tune his company's foreign market entry plans.His stack of papers include statements of business ethics,income and balance sheets,maps of geographic and market coverage and a series of client references.Bernie is most likely investigating __________________________________.

Licensing generally involves smaller up-front risks and expenditures than other foreign market entry modes.

Contract manufacturing has become a controversial issue due to its ______________________________.

Low- to moderate-risk strategies commonly employed by SMEs include all of these options except _______________.

When two or more partners form a joint venture to produce a final or intermediate product,or to integrate wholesale and retail activities,an upstream JV has been established.

Exporting is limited to actual physical products that are produced outside the target country market.

Diamond Machining Technology was forced to improve its domestic operations by virtue of global competition.

Responding to import competition from China and Israel,Diamond Machining Technology,discussed in Box 8-1,deliberately initiated exports of its diamond-based sharpeners to those markets.

Exporters that utilize intermediaries who specialize in this activity from the home base are implementing ___________________.

Reducing the uncertainties inherent in international business is not a realistic objective in the management of a cross-border partnership.

Another common term for contract manufacturing is outsourcing.

One of the larger concerns related to the licensing process is that _______________.

Management companies are typically tasked to decide on ownership,financial,strategic or policies issues for the business.

One of the disadvantages of IJVs is that there is little sharing of risk.

Joint ventures are created when two or more companies share ownership of a third commercial entity and collaborate in the production of its goods or services.

Hakim is lucky.He loves his job! As an executive with Lean Jean denim in the U.S.,he is responsible for arranging the marketing,sales and transport for the firm's clothing lines to all of its global markets through his company's subsidiaries worldwide.Lean Jeans conducts international business via ______________________.

International franchising gives more control to the franchisee company over the franchisor who has provided the company's trademarks,products and/or services,and production and/or operation processes.

Jalal's firm recently underwent a spate of negative publicity regarding their manufacturing processes.Not only were they lacking control over their production quality,but serious allegations regarding treatment and compensation of labor arose.Jalal is concerned that the _______________________ arrangement intended to save his company money actually ended up costing them!

Regina is interested in the market opportunity evident in Malvania for her line of rubber cleaning products.Her concerns regarding market entry include the fact that her product line is highly mature.In addition,the Malvanian government often imposes high tariffs on rubber products due to its own rubber industry,and has been known to impose profit repatriation restrictions.Regina should consider ___________________.

All of the following are reasons that a firm expands into international markets except: ___________________________.