Exam 12: Strategies for Analyzing and Entering Foreign Markets

Briefly describe the services provided by manufacturers' agents, manufacturers' export agents, export and import brokers, and freight forwarders.

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Question 1

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Manufacturers' agents solicit domestic orders for foreign manufacturers, usually on a commission basis. Manufacturer's export agents act as foreign sales departments for domestic manufacturers, selling those firms' goods in foreign markets. Export and import brokers bring together international buyers and sellers of such standardized commodities as coffee, cocoa, and grains. Freight forwarders specialize in the physical transportation of goods, arranging customs documentation, and obtaining transportation services for their clients.

Sub-Saharan Africa accounts for ________ of world GDP.

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Question 2

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What is the difference between direct costs and opportunity costs?

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Question 3

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Direct costs are those the firm incurs in entering a new foreign market and include costs associated with setting up a business operation. Opportunity costs are the costs of missing other opportunities by virtue of entering one market rather than another.

Which of the following is typically critical to a turnkey project?

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Question 4

McDonald's, Pizza Hut, and KFC all rely on franchising for their international expansion.

(True/False)

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Question 5

The firm that leases the right to use intellectual property is called the ________.

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Question 6

Bechtel, a construction and engineering firm, has a contract with the Indian government to expand the airport in New Delhi. Bechtel will design, construct, and equip the airport before turning the facility over to the Indian government upon completion. Which entry mode for international business is used by Bechtel?

(Multiple Choice)

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Question 7

Direct costs are those the firm incurs in entering a new market and include costs associated with setting up a business operation.

(True/False)

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Question 8

Which of the following statements about Webb-Pomerene associations is most likely true?

(Multiple Choice)

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Question 9

What are the five primary types of entry modes for foreign markets? What types of risks should international firms consider before entering a foreign market?

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Question 10

Which of the following is not one of the three steps in increasing market share, revenue, and profits?

(Multiple Choice)

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Question 11

Manufacturers' agents never get involved in the physical transportation of goods.

(True/False)

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Question 12

What is the difference between a brownfield strategy and a greenfield strategy? Do you think one strategy is better than the other? Explain.

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Question 13

The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game design firms with technical specifications for how Nintendo consoles function. The game design firms create the games and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example?

(Multiple Choice)

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Question 14

Which of the following best explains the success of the sogo shosha?

(Multiple Choice)

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Question 15

A(n) ________ is a firm directly engaged in importing and exporting a wide variety of goods for its own account.

(Multiple Choice)

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Question 16

What is contract manufacturing? What are the advantages and disadvantages of contract manufacturing?

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Question 17

Which of the following is the least effective indicator of a country's potential for economic growth?

(Multiple Choice)

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Question 18

Which form of market entry should a firm use when it needs to coordinate the activities of its foreign subsidiaries to achieve strategic synergies?

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Question 19

Juanita recently purchased a FDX Computer. She needs assistance setting it up and contacts the firm's customer service center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 122

Briefly describe the services provided by manufacturers' agents, manufacturers' export agents, export and import brokers, and freight forwarders.

Sub-Saharan Africa accounts for ________ of world GDP.

What is the difference between direct costs and opportunity costs?

Which of the following is typically critical to a turnkey project?

McDonald's, Pizza Hut, and KFC all rely on franchising for their international expansion.

The firm that leases the right to use intellectual property is called the ________.

Direct costs are those the firm incurs in entering a new market and include costs associated with setting up a business operation.

Which of the following statements about Webb-Pomerene associations is most likely true?

What are the five primary types of entry modes for foreign markets? What types of risks should international firms consider before entering a foreign market?

Which of the following is not one of the three steps in increasing market share, revenue, and profits?

Manufacturers' agents never get involved in the physical transportation of goods.

What is the difference between a brownfield strategy and a greenfield strategy? Do you think one strategy is better than the other? Explain.

Which of the following best explains the success of the sogo shosha?

A(n) ________ is a firm directly engaged in importing and exporting a wide variety of goods for its own account.

What is contract manufacturing? What are the advantages and disadvantages of contract manufacturing?

Which of the following is the least effective indicator of a country's potential for economic growth?

Which form of market entry should a firm use when it needs to coordinate the activities of its foreign subsidiaries to achieve strategic synergies?

Juanita recently purchased a FDX Computer. She needs assistance setting it up and contacts the firm's customer service center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

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