Question 1

Which of the following is a step in the market entry decision process?

Accepted Answer

A)   Forecast a corporate budget.
B)   Conduct a marketing audit.
C)   Decide on a mode of entry.
D)   Review transportation strengths.
E)   Analyze domestic demand. C

Question 2

All of the following are considered benefits of forming joint ventures EXCEPT:

Accepted Answer

A)   greater return potential.
B)   shared profits instead of shared royalties.
C)   more control over operations.
D)   increased cost controls.
E)   synergies. D

Question 3

Wrigley, the U.S. chewing gum manufacturer, has not been interested in most Latin American markets because many of the local governments imposed ownership
Restrictions. This would be an example of ________________ in markets.

Accepted Answer

A)   finding opportunities
B)   "weeding out"
C)   cross-fertilization
D)   demand conflict
E)   unfairness B

Question 4

All of the following are illustrations of the four generic reasons for forming strategic alliances EXCEPT:

Accepted Answer

A)   offense.
B)   defense.
C)   catch-up.
D)   remain.
E)   restructure.

Question 5

In a cooperative joint venture, the partners agree to raise capital in proportion to the equity stakes agreed upon.

Accepted Answer

A) True 
 B)False

Question 6

All of the following are major external criteria for making a decision as to a mode of entry into a foreign market EXCEPT:

Accepted Answer

A)   company leadership.
B)   market size and growth.
C)   need for control.
D)   government regulations.
E)   local infrastructure.

Question 7

When going abroad most companies start their international expansion with
_______________.

Accepted Answer

The answer of When going abroad most companies start their...

Question 8

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following of those types can be used to build up an
Initial presence (such as through a liaison office)?

Accepted Answer

A)   platform countries.
B)   emerging countries.
C)   maturing and established countries.
D)   growth countries.
E)   none of the above

Question 9

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as an
Established/maturing market?

Accepted Answer

A)   China.
B)   the Philippines.
C)   India.
D)   Vietnam.
E)   Japan.

Question 10

_____________________ come about when multinational companies prefer to enter new markets with 100 percent ownership.

Accepted Answer

A)   Contract manufacturing agreements
B)   Parallel exporting agreements
C)   Cooperative exporting agreements
D)   Wholly owned subsidiaries
E)   Joint ventures

Question 11

Risks of exiting a foreign market may lead to all the following EXCEPT:

Accepted Answer

A)   fixed costs of exit.
B)   disposition of assets.
C)   short-term opportunities.
D)   signal to other markets.
E)   long-term opportunities.

Question 12

One of the most popular franchise plans used in international marketing is ____________________ where the franchiser gives the franchise to a local
Entrepreneur who in turn sells local franchises within a territory.

Accepted Answer

A)   sales franchise
B)   master franchise
C)   strategic franchise
D)   cross-country franchise
E)   border-territory franchise

Question 13

When a firm uses a strategic alliance as a vehicle to rejuvenate a business that is not core and in which it has no leadership position, it is probably using a
________________ strategy.

Accepted Answer

A)   defend
B)   catch up
C)   restructure
D)   remain
E)   none of the above

Question 14

Exiting a country often involves substantial fixed cost.

Accepted Answer

A) True 
 B)False

Question 15

One method of assessing whether a company should enter a foreign market or not is to use an opportunity matrix. To use such a matrix, the marketer should assess high,
Moderate, and low opportunities as measured on business and political risk and
___________________ scales or cells.

Accepted Answer

A)   demand
B)   financial constraints
C)   market opportunities
D)   market sensitivity
E)   distance from home market

Question 16

One of the most popular forms of cooperative exporting is _________________. With this method, the company uses the overseas distribution network of another
Company (local or foreign) for selling its goods in the foreign market.

Accepted Answer

A)   parallel exporting.
B)   venture exporting.
C)   piggyback exporting.
D)   make-or-buy exporting.
E)   foreign export management exporting.

Question 17

Which of the following most accurately describes the first step in the market entry decision process?

Accepted Answer

A)   Decide on the goals of the target markets.
B)   Decide on the mode of entry.
C)   Decide on the time of entry.
D)   Decide on the target product/market.
E)   Decide on the marketing mix plan.

Question 18

___________________ offers several advantages. Chief among these are the firm gets instant foreign market expertise, very little risk is involved, and
No major resource commitments are required.

Accepted Answer

A)   Licensing
B)   Parallel exporting
C)   Cooperative exporting
D)   Direct exporting
E)   Indirect exporting

Question 19

The goals of a preliminary screen to determine market opportunities are to minimize mistakes of ignoring countries that offer viable opportunities for the product and:

Accepted Answer

A)   offending local governments.
B)   offending local cultures.
C)   offending local merchants.
D)   violating local advertising laws.
E)   not wasting time on countries that offer little or no potential.

Question 20

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as
A growth country?

Accepted Answer

A)   Hong Kong.
B)   Vietnam.
C)   China.
D)   Taiwan.
E)   Japan.

Exam 9: Global Market Entry Strategies

Which of the following is a step in the market entry decision process?

All of the following are considered benefits of forming joint ventures EXCEPT:

Wrigley, the U.S. chewing gum manufacturer, has not been interested in most Latin American markets because many of the local governments imposed ownership Restrictions. This would be an example of ________________ in markets.

All of the following are illustrations of the four generic reasons for forming strategic alliances EXCEPT:

In a cooperative joint venture, the partners agree to raise capital in proportion to the equity stakes agreed upon.

All of the following are major external criteria for making a decision as to a mode of entry into a foreign market EXCEPT:

When going abroad most companies start their international expansion with _______________.

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following of those types can be used to build up an Initial presence (such as through a liaison office) ?

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as an Established/maturing market?

_____________________ come about when multinational companies prefer to enter new markets with 100 percent ownership.

Risks of exiting a foreign market may lead to all the following EXCEPT:

One of the most popular franchise plans used in international marketing is ____________________ where the franchiser gives the franchise to a local Entrepreneur who in turn sells local franchises within a territory.

When a firm uses a strategic alliance as a vehicle to rejuvenate a business that is not core and in which it has no leadership position, it is probably using a ________________ strategy.

Exiting a country often involves substantial fixed cost.

One method of assessing whether a company should enter a foreign market or not is to use an opportunity matrix. To use such a matrix, the marketer should assess high, Moderate, and low opportunities as measured on business and political risk and ___________________ scales or cells.

One of the most popular forms of cooperative exporting is _________________. With this method, the company uses the overseas distribution network of another Company (local or foreign) for selling its goods in the foreign market.

Which of the following most accurately describes the first step in the market entry decision process?

___________________ offers several advantages. Chief among these are the firm gets instant foreign market expertise, very little risk is involved, and No major resource commitments are required.

The goals of a preliminary screen to determine market opportunities are to minimize mistakes of ignoring countries that offer viable opportunities for the product and:

Markets can be classified in four types of countries based on their respective market attractiveness. Which of the following countries would most likely be listed as A growth country?