Question 1

Which of the following is not a reason for Brazilians developing orange groves in Florida?

Accepted Answer

A) There are high transportation costs from Brazil to U.S.markets for fresh orange juice. 
B) The U.S.consumes 40 percent of all orange juice. 
C) There is a high market potential in the United States. 
D) U.S.competitors attacked the Brazilian market.

Question 2

In indirect exporting,a major disadvantage of using a domestic intermediary is its lack of knowledge of foreign market conditions.

Accepted Answer

A) True 
 B)False

Question 3

Canon Car Mirrors is considering using a licensee for the Thai market.Which of the following facts is not a good reason for Cannon to license in Thailand?

Accepted Answer

A) Canon does not want to commit any time or resources to the Thai market. 
B) Thailand will never be a major market for Canon. 
C) Canon does not have much money to invest in the Thai market. 
D) Thailand is more politically risky than Canon's other markets.

Question 4

Independent distributors overseas earn profits

Accepted Answer

A) by earning a margin on the selling price. 
B) by price fixing. 
C) through bribes. 
D) None of the above.

Question 5

An alliance involving two or more global firms in which each partner brings a particular skill or resource is called a

Accepted Answer

A) marketing alliance. 
B) licensing agreement. 
C) strategic alliance. 
D) contract manufacturing.

Question 6

Full-scale integrated production units are a good option in countries with low costs and high market demand.

Accepted Answer

A) True 
 B)False

Question 7

When a company enters foreign markets by assigning the right to a copyright or patent and/or a trademark to another company for a fee or royalty,the strategy is known as ____________________.

Accepted Answer

The answer of When a company enters foreign markets by...

Question 8

Market entry through acquisitions is an attractive option when a market is saturated with competitors.

Accepted Answer

A) True 
 B)False

Question 9

In countries such as Mexico and the Philippines franchising accounts for less than one percent of GDP.

Accepted Answer

A) True 
 B)False

Question 10

Texas Taffy produces high quality candy.It is currently exporting to Mexico though several Mexican distributors.The company now wants to take greater control over the marketing of its products in Mexico.Texas Taffy should

Accepted Answer

A) replace its distributors with local agents. 
B) employ an export management company. 
C) join an export consortium. 
D) establish a marketing subsidiary.

Question 11

French Bakery Breads is considering entering the Canadian bread market.Which would not be a good entry option?

Accepted Answer

A) Establishing manufacturing facilities in Canada 
B) Establishing compounding facilities in Canada 
C) Establishing a wholly-owned subsidiary in Canada 
D) Establishing a joint venture in Canada

Question 12

A(n)____________________ firm is established by a local joint venture partner to illegally compete with the joint venture.

Accepted Answer

The answer of A(n)____________________ firm is established by a local...

Question 13

Marketing subsidiaries are required in most developed countries.

Accepted Answer

A) True 
 B)False

Question 14

Licensing can be a means of entering a foreign market quickly.

Accepted Answer

A) True 
 B)False

Question 15

Licensing fees in general are substantially lower than the profits that can be made through exporting or local manufacturing.

Accepted Answer

A) True 
 B)False

Question 16

A major problem with an international joint venture is that the partners are legally contracted together forever.

Accepted Answer

A) True 
 B)False

Question 17

When a company exports to foreign markets directly or through an intermediary located in the foreign market,the approach is termed as ____________________.

Accepted Answer

The answer of When a company exports to foreign markets...

Question 18

Joint ventures can be successful if the partners share the same goal and one partner accepts primary responsibility for operational matters.

Accepted Answer

A) True 
 B)False

Question 19

Reaching markets through an intermediary located in the exporter's home country is called direct exporting.

Accepted Answer

A) True 
 B)False

Question 20

A licenser is the firm that initiates a licensing agreement.

Accepted Answer

A) True 
 B)False

Exam 9: Global Market Entry Strategies

Which of the following is not a reason for Brazilians developing orange groves in Florida?

In indirect exporting,a major disadvantage of using a domestic intermediary is its lack of knowledge of foreign market conditions.

Canon Car Mirrors is considering using a licensee for the Thai market.Which of the following facts is not a good reason for Cannon to license in Thailand?

Independent distributors overseas earn profits

An alliance involving two or more global firms in which each partner brings a particular skill or resource is called a

Full-scale integrated production units are a good option in countries with low costs and high market demand.

When a company enters foreign markets by assigning the right to a copyright or patent and/or a trademark to another company for a fee or royalty,the strategy is known as ____________________.

Market entry through acquisitions is an attractive option when a market is saturated with competitors.

In countries such as Mexico and the Philippines franchising accounts for less than one percent of GDP.

Texas Taffy produces high quality candy.It is currently exporting to Mexico though several Mexican distributors.The company now wants to take greater control over the marketing of its products in Mexico.Texas Taffy should

French Bakery Breads is considering entering the Canadian bread market.Which would not be a good entry option?

A(n)____________________ firm is established by a local joint venture partner to illegally compete with the joint venture.

Marketing subsidiaries are required in most developed countries.

Licensing can be a means of entering a foreign market quickly.

Licensing fees in general are substantially lower than the profits that can be made through exporting or local manufacturing.

A major problem with an international joint venture is that the partners are legally contracted together forever.

When a company exports to foreign markets directly or through an intermediary located in the foreign market,the approach is termed as ____________________.

Joint ventures can be successful if the partners share the same goal and one partner accepts primary responsibility for operational matters.

Reaching markets through an intermediary located in the exporter's home country is called direct exporting.

A licenser is the firm that initiates a licensing agreement.