Exam 9: Market Entry and Expansion

_____ incentives consist of guaranteed government purchases; special protection from competition through tariffs,import quotas,and local content requirements; and investments in infrastructure facilities.

Proactive motivations influence firms that respond to environmental shifts by changing their activities over time.

The primary external influence on a firm's decision to go international is _____.

Multinational firms are accused of causing _____,when they deprive domestic firms of talent by employing the brightest locals and moving them to another country.

What is the difference between proactive and reactive motivators that spur a company to go international?

The primary outside influence on a firm's decision to go international is foreign demand.

While negotiating licensing agreements,which of the following refers to the costs incurred in the foreclosure of other sources of profit,such as exports or direct investment?

Strategic alliances are arrangements between two or more companies with different types of business objectives.

One key concern of franchising is the protection of the total business system that a franchise offers.

A firm with excess capacity assigns all fixed costs to domestic production.For the international markets,the firm uses a pricing scheme that focuses mainly on variable costs.This strategy allows the firm to offer its products abroad at a cost lower than at home.The firm in question could be accused of _____.

In a _____,the supplier brings together a package of skills that will provide an integrated service to the client without incurring the risk and benefit of ownership.

Bank participation in export trading companies was intended to allow better access to capital.

Which of the following costs is covered under the licensing agreement?

_____ incentives offer special funding for the investor by providing land or buildings,loans,loan guarantees,or wage subsidies.

By raising money locally,multinationals provide the much needed boost to smaller capital markets.

A major cause for the increase in foreign direct investment is derived demand.

A company that starts exporting its products or services within two years of its establishment is called a(n)_____.

Describe three types of ownership in foreign direct investment.

Which of the following is a major deterrent to full ownership of FDI?

Geographic closeness to foreign markets may not translate into real or perceived closeness to the foreign customers.