Exam 10: Entering Foreign Markets

Which of the following statements is true of research and development (R&D)contracts?

A chip company operating in Pakistan,a majority Muslim country,recently got into a public relations nightmare when the public discovered that the firm was using a pork based product in their chips.Many Muslim people do not eat pork.Which of the following aspects of the liability of foreignness is this an example of?

If generating returns from foreign markets is the goal,and returns are not being generated,which of the following strategies may be necessary?

In the context of modes of entry,_____ refers to efforts among a number of firms to jointly market their products and services.

Flarring Corp.is a well-known company that manufactures spare parts for automobiles.The company,based in Boston,expanded by entering the market of Nerodo.Even after 12 years of marketing in Nerodo,the company is on the verge of failure.In this case,which of the following factors could lead to the failure of Flarring Corp.in Nerodo?

Analyze first-mover disadvantages.

Explain equity and non-equity modes of entry.

_____ is a type of wholly owned subsidiary.

Laelle Corp.,a popular cosmetic brand in France,has decided to expand its business to Australia.The company enters into an agreement with a local firm in Australia by which the two companies share 50 percent equity.This mode of entry is an example of _____.

Ink Struck Inc.,a publishing company,wants to expand its market worldwide.In this case,which of the following will be a challenge faced by Ink Struck Inc.in host countries?

Which of the following is an informal barrier to trade when foreign firms enter new markets?

If a firm decides to engage in crude oil and petroleum business abroad,which of the following countries will provide location-specific advantage to the firm?

A joint venture is defined as a subsidiary located in a foreign country that is entirely owned by the parent multinational.

Pro-creations Corp.,a tool manufacturing company,has decided to expand its business internationally.Consequently,the company has paid a contractor to construct a manufacturing facility and an office.When the project is complete and ready for operation,the contractor will hand over the facility to Pro-creations Corp.to pursue its business.This mode of entry into international market is an example of _____.

Citigroup was one of the first firms to enter Afghanistan,earning a good deal of goodwill from the Afghan government.This is an example of:

_____ is the location-specific advantage that arises from the clustering of economic activities in certain locations.

Palova Skin care,a famous cosmetic brand,is successfully engaging in international business with several countries.Contrary to the successes in foreign market,the recent attempts to expand its business in its neighboring country,Arkadas,has been unsuccessful,owing to its strict rules for women and perception of beauty.In this scenario,which of the following is most likely the reason for Palova's failure in Arkadas?

An MNE is defined by entering foreign markets via equity modes through FDI.A firm that merely exports/imports with no FDI is usually not regarded as an MNE.

_____ is a non-equity mode of entry into a foreign market.

Dubai attracts numerous foreign entrants to engage in international business.It is an ideal stopping point for air traffic between Europe and Asia,and between Africa and Asia.Which of the following advantages has Dubai honed to attract foreign business?