Exam 8: Entry Strategies in Global Business

The purchase of established firms abroad with the goal of using the existing production, marketing, and distribution networks and of having instant access to foreign markets that fit the purchasing firm's global strategy is known as a(n)_____.

An ______ is a business that is jointly owned and operated by two or more firms that pool their resources to penetrate host country markets, generate and split profits, and share commercial risk.

MNEs can never successfully enter foreign markets as traders, licensors, or franchisors.

______ refers to the potential financial loss that entrepreneurs are willing to take in a business.

Which of the following is NOT true about licensing?

A challenge faced by strategic alliances is that

Subsidiaries require major marketing efforts to penetrate the international market because of cultural differences and because the entrant is new and relatively unknown.

The only profitable way for foreign firms to enter trade-restricted markets is through FDI rather than through exports.

Of the following, which is NOT an emerging-market?

The Coca-Cola company has operations in more than 140 countries and generates more that 55 percent of its profits from its overseas operations. Coca-Cola's annual profits are, therefore, more stable than those of a firm that focuses upon the U.S. market alone. Coca-Cola is engaging in _____.

An agreement between two or more firms that do not involve the creation of a separate entity with joint ownership and in which the firms stand to gain revenues and maximize profits through cooperation for a given period of time is called a(n)_____.

A firm that has a patent for manufacturing a particular brand-name drug will have monopoly rights to use that brand name abroad to produce goods profitably. This is an example of a(n)_____ advantage.

A relatively low-risk business operation that involves penetrating foreign markets (by exporting)or importing merchandise at competitive prices for domestic consumption refers to _______.

_______ refers to the practice in which a company or individual provides the foreign partner with the technology to manufacture and sell products or services in a target country for an annual fee.

The practice in which the parent firm is obligated to provide its brand name, specialized equipment and/or service, and sometimes to fund some startup costs, to another firm in return for an annual fee is known as _____.

The so-called BRIC countries consist of: _____.

General Electric, Microsoft, Sony, Toyota, and BMW are examples of _____.

A new facility built and operated overseas that requires large investments of capital is an example of a _____.

Mexico consistently has been the world's largest recipient of FDI capital in the world averaging some $200 billion a year in net FDI inflows since 2005. Mexico has been made more globally competitive as a consequence of such FDI flows.

Interestingly, licensing and franchising typically leads to the penetration of international markets without significant capital investment abroad by the parent company.