Exam 13: Country Selection and Entry Modes

Atlantos and Neora, two countries in the same hemisphere, have different ethnicities. In the context of the liability of foreignness, which of the following forms of distances does this illustrate?

Nemmark Fantasy World is a leading water park in Neora. Solaris Creators wants to open a similar water park in its country, Lisdon. To accomplish this, a contractual agreement is made between Nemmark and Solaris. According to the contract, Nemmark will receive 20 percent royalty on ticket sales in exchange for providing Solaris Creators the authority to use Nemmark's brand. In the context of entering a foreign market, this scenario exemplifies the entry mode of _____.

In the context of a company entering a foreign market, which of the following is a difference between licensing and wholly owned subsidiaries?

In the context of the liability of foreignness, which of the following companies is more likely to succeed?

A new management has been formed at Griod Tech after the company overcame a severe financial crisis. Most of the members of the management feel that the company should expand to overcome the losses incurred. It believes that it should enter the foreign market in the form of a wholly owned subsidiary. However, the Director of Griod Tech, Harry, feels otherwise and considers this option to be a risky endeavor. Which of the following justifies Harry's viewpoint?

Dienne Automobiles has chosen to enter the foreign market by creating a wholly owned subsidiary. This subsidiary is developed through a greenfield venture. Which of the following internationalization entry tactics is being used by Dienne Automobiles in this scenario?

In the context of the liability of foreignness, customers exhibit a(n) _____ when they prefer and are willing to pay more for local brands even when the quality is inferior.

In the context of different foreign market entry modes, in which of the following modes can customers become competitors?

Which of the following is a disadvantage associated with joint ventures?

Diraan and Lordan, two countries in the same continent, have different natural resources. In the context of the liability of foreignness, which of the following forms of distances does this illustrate?

Which of the following is typically a billion-dollar project undertaken by governments collaborating with large multinational companies that use sophisticated technologies in industries into which governments are unwilling to let foreign companies enter directly?

In the context of entering a foreign market, which of the following companies should avoid choosing export as its entry mode?

Airaan and Nordan, two countries in the same hemisphere, have different climates. In the context of the liability of foreignness, which of the following forms of distances does this illustrate?

Albath and Koina, two countries in the same continent, have different trading blocs. In the context of the liability of foreignness, which of the following forms of distances does this illustrate?

According to you, if companies increase the number of licensees, will the difficulties associated with protecting the company brand from being misused increase? Give reasons to support your answer.

Irony Pizzas has entered a unique form of licensing with Rob Jasons Inc. to open fifty stores across the city of Norjan. This exemplifies a(n) _____.

In the context of the modes of entering a foreign market, identify a difference between nonequity modes and equity modes.

Jeole Handicrafts produces its artifacts in its home country. It then exports some of its goods to other countries. Which of the following statements is true of Jeole Handicrafts in this scenario?

When Hrojo Chemicals engages in international business through a turnkey operation, it becomes responsible for developing the facility required to run a chemical factory in a foreign nation, along with the tasks of making the utility operational, training the staffs, and finally handing over the operations to the local owners. In this scenario, which of the following internationalization entry tactics is being used by Hrojo Chemicals?

In the context of entry tactics available for different entry modes, which of the following statements is true of white-label goods?