Exam 15: Entry Strategy and Strategic Alliances

If a firm can realize location economies by moving production elsewhere,it should avoid:

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

The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation.

Which of the following is an advantage of establishing a joint venture?

How can a firm protect its proprietary information in a joint venture arrangement?

Explain the idea of a turnkey project.Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries.

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.

When an exporting firm finds that its local agent is also carrying competitors' products,the firm may switch to a _____ to handle local marketing,sales,and service.

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.

If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how,which of the following entry strategy is best?

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

A good ally will expropriate the firm's technological know-how while giving away little in return.

An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own.

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

Which of the following is a disadvantage of licensing?

Most service firms have found that _____ with local partners work best for controlling subsidiaries.

Which of the following is true of acquisitions?

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

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