Exam 15: Entry Strategy and Strategic Alliances

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Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

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Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______.

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

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A wholly owned subsidiary limits a firm's control over operations in different countries.

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

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

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Discuss the three primary characteristics of a good ally.

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Discuss the trade-offs associated with large-scale entry versus small-scale entry.

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How can a firm increase the probability of selecting a good partner?

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A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption,scale economies,and switching costs.

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A strategic commitment can be reversed by the top management according to their convenience.

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

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Briefly explain the advantages and disadvantages of franchising agreements.

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Which of the following is a first-mover advantage?

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Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.

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Why do acquisitions fail?

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What is the primary advantage of licensing?

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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 a greenfield investment.

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If a firm's core competency is based on control over proprietary technological know-how,_____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology.

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_____ refer to cooperative agreements between potential or actual competitors.

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