Exam 9: Global Market Entry Strategies

Provide an assessment of strategic alliances. What are they used for, what are the characteristics of those that generally succeed, and what are the general types? Be sure to be specific in your answers.

From a transaction-cost analysis perspective, market failure typically happens when transaction-specific assets become _________________ and therefore more high- Control situations are needed.

Markets can be classified in four types of countries based on their respective market attractiveness. All of the following are part of the classification scheme EXCEPT:

The chief reason that some firms choose acquisitions (or mergers) to enter a foreign market is that they can:

Preliminary screening is an accepted method of reducing the number of candidates for market entry.

With respect to joint ventures, the ________________ argument is illustrated by not only shared capital and risk but possible contributions brought in by the local Partner in land, raw materials, expertise on the local environment, and access to Local distribution networks.

With a __________________, the foreign company agrees to share equity and other resources with other partners to establish a new entity in the target country.

The underlying goal of _________________ in creating a strategic alliance is to sustain the firm's leadership position by learning new skills, getting access to new Markets and developing new technologies.

Briefly, explain the concept of licensing in a foreign market. In addition, cite the benefits and drawbacks of licensing. Be specific in your responses.

Under ___________ exporting, a firm sets up its own export department and sells its products via a middleman located in the foreign market.

Ownership strategies in foreign markets can take two forms: acquisitions and ____________________.

Decisions to exit or divest a foreign market may have all the following reasons EXCEPT:

There are no magic ingredients to foster the stability of joint ventures, however, all of the following are good guidelines EXCEPT:

An example of a platform country is India.

A _________________________ perspective argues that the desirable governance structure (high- versus low-control mode) will depend on the comparative transaction Costs (the costs of running an operation).

When Coca-Cola looks at per capita income and the number of minutes that it would take for somebody to work to be able to afford a Coca-Cola product, the company is Following which of the following steps of the initial screening process for Market entry?

Wholly owned subsidiaries give MNCs _______________ of their operations.

_______________________ means that the firm uses a middleman based in its home market to do the exporting.

Like licensing and franchising, nurturing a future competitor is one of the biggest dangers in ___________________.

Cooperative exporting is also called: