Question 1

A large and growing domestic market will commonly provide incentive for companies to expand internationally.

Accepted Answer

A) True 
 B)False

Question 2

The market entry mode in which facilities are designed,constructed,equipped and then remitted to the purchaser,often with trained personnel,is known as __________________________.

Accepted Answer

A)  a turnkey operation 
B)  a franchise 
C)  exporting 
D)  licensing

Question 3

The heaviest users of outsourcing are human resource firms.

Accepted Answer

A) True 
 B)False

Question 4

Changes in economic,competitive,government,and market factors,can be anticipated by the process of _______________________________.

Accepted Answer

A)  environmental scanning 
B)  the International Product Life Cycle model 
C)  competitive scanning 
D)  technology scanning

Question 5

The purchaser of a turnkey operation must accommodate all of the following except ___________________.

Accepted Answer

A)  direct involvement in design and construction of the facility 
B)  long-term time commitments 
C)  long-term exchange rate fluctuations 
D)  exposure to elevated political and economic risks

Question 6

In order to optimize foreign markets,the entry mode employed must be consistent and retain its original structure.

Accepted Answer

A) True 
 B)False

Question 7

When ServiceWrap,a major blow molder of consumer food service films and wraps,cooperates with Alumall,metal processors making food service foils and stainless steel tableware,to tap the hospitality market in Russia,the firms have formed a _________________________.

Accepted Answer

A)  vertical strategic alliance 
B)  horizontal strategic alliance 
C)  turnkey operation 
D)  diagonal strategic alliance

Question 8

The most important indicator of how quickly a firm is ready and willing to export is the speed at which resources beneficial to international competitiveness are developed.

Accepted Answer

A) True 
 B)False

Question 9

The process of transferring the rights to a firm's products to an overseas company for the purpose of producing or selling it there is referred to as _________________.

Accepted Answer

A)  a turnkey operation 
B)  exporting 
C)  direct investment 
D)  licensing

Question 10

The two categories of external factors considered in determining the mode of global market entry are ____________________________.

Accepted Answer

A)  production and environmental conditions 
B)  market size and competitive environment 
C)  controllable and uncontrollable factors 
D)  target country factors and domestic country factors

Question 11

"What are the key success factors for our products?" "Do we have excess production capacity?" and "Which of our products have the highest potential abroad?" are all questions posed when a firm determines ___________________________.

Accepted Answer

A)  whether or not to globalize 
B)  its mode of entry for pursuing international markets 
C)  if it should source globally 
D)  its global branding strategy

Question 12

Virginie is President of Plast-Right products,a firm planning on manufacturing food service equipment in a new facility in Abu Dhabi .At a party,her nephew quizzes her about the project."You must be inundated with issues regarding equipment,site visits and local compliance issues!" he observes."Not at all," she replied."I've got my issues,believe me,but these details are all being handled as part of our ___________".

Accepted Answer

A)  management contract 
B)  franchise agreement 
C)  turnkey operation 
D)  strategic alliance

Question 13

When Saudi Aramco and Dow Chemical announced their plans to construct and operate a new petrochemical facility in Jubail,Saudi Arabia,each with a percentage ownership in the facility,they described a basic _______________________________.

Accepted Answer

A)  international joint venture 
B)  strategic alliance 
C)  outsourcing arrangement 
D)  licensing arrangement

Question 14

Shana and her finance colleagues are discussing the costs associated with an international market expansion,which includes the need for new product development funds.Their concerns represent __________ factors.

Accepted Answer

A)  uncontrollable 
B)  external 
C)  internal 
D)  domestic

Question 15

When Nutrablend Corporation assessed its mode of entry for operations in Belgium,it discovered that foreign sales office personnel were subject to high levels of corporate contribution to social security programs.Nutrablend then decided to utilize its UK sales office for sales into the market.The company was affected by the target country's factor of ___________________ conditions.

Accepted Answer

A)  market 
B)  environmental 
C)  technical 
D)  competitive

Question 16

Licensors are compensated via _____________________.

Accepted Answer

A)  commissions 
B)  royalty fees 
C)  direct sales revenues 
D)  consignment proceeds

Question 17

Compared to direct investment,international strategic alliances embody all of the following benefits except _____________________.

Accepted Answer

A)  the pooling of resources across multiple firms 
B)  the sharing of risk 
C)  a lower level of financial investment 
D)  a commonality of decision-making styles

Question 18

Franchising has reached a saturation point in both developed and emerging markets.

Accepted Answer

A) True 
 B)False

Question 19

While small and large companies are different in many respects,their choices of market entry methods are often the same.

Accepted Answer

A) True 
 B)False

Question 20

The fact that the typical channel of distribution in State Chemical's target market involves many intermediaries and several layers of pricing discouraged them pursuing business there.The firm was impacted by the target country factor of __________________________.

Accepted Answer

A)  environment 
B)  technology 
C)  market 
D)  production

Exam 8: Entering Global Markets

A large and growing domestic market will commonly provide incentive for companies to expand internationally.

The market entry mode in which facilities are designed,constructed,equipped and then remitted to the purchaser,often with trained personnel,is known as __________________________.

The heaviest users of outsourcing are human resource firms.

Changes in economic,competitive,government,and market factors,can be anticipated by the process of _______________________________.

The purchaser of a turnkey operation must accommodate all of the following except ___________________.

In order to optimize foreign markets,the entry mode employed must be consistent and retain its original structure.

When ServiceWrap,a major blow molder of consumer food service films and wraps,cooperates with Alumall,metal processors making food service foils and stainless steel tableware,to tap the hospitality market in Russia,the firms have formed a _________________________.

The most important indicator of how quickly a firm is ready and willing to export is the speed at which resources beneficial to international competitiveness are developed.

The process of transferring the rights to a firm's products to an overseas company for the purpose of producing or selling it there is referred to as _________________.

The two categories of external factors considered in determining the mode of global market entry are ____________________________.

"What are the key success factors for our products?" "Do we have excess production capacity?" and "Which of our products have the highest potential abroad?" are all questions posed when a firm determines ___________________________.

When Saudi Aramco and Dow Chemical announced their plans to construct and operate a new petrochemical facility in Jubail,Saudi Arabia,each with a percentage ownership in the facility,they described a basic _______________________________.

Shana and her finance colleagues are discussing the costs associated with an international market expansion,which includes the need for new product development funds.Their concerns represent __________ factors.

Licensors are compensated via _____________________.

Compared to direct investment,international strategic alliances embody all of the following benefits except _____________________.

Franchising has reached a saturation point in both developed and emerging markets.

While small and large companies are different in many respects,their choices of market entry methods are often the same.

The fact that the typical channel of distribution in State Chemical's target market involves many intermediaries and several layers of pricing discouraged them pursuing business there.The firm was impacted by the target country factor of __________________________.