Exam 9: Foreign Operations Modes

The overall attractiveness of a potential new market is determined by the balance between the costs, risks and benefits of doing business in that market.

Selection of the correct overseas market requires consideration of _______

The majority of service firms enter a foreign market using exporting

FDI can take two forms: greenfield; and mergers and acquisitions

Greenfield market entry offers _______

Foreign market operating strategies entail decisions on market selection, entry mode and timing

In the case of resource transfer modes, ownership and control are shared between the firm and its local partner

Examples of platforms models are: (select all that applies)

In the case of resource transfer modes, ownership and control are _______

_______ is one of the main internal factors affecting the choice of foreign market operating mode

One of the advantages of being a first mover is _______

Exporting is the most common form of market entry for small and medium sized firm (SMEs)

Foreign market operating strategies that offer low exit costs inhibit flexibility and opportunities for mode switching .

International experience is one of the primary external factors affecting the choice of foreign market operating mode

Direct exporting involves the production of goods in the home market and marketing into a foreign market _______

If a company is seeking to enter a foreign market with a culture highly dissimilar to its own, it could consider using a strategy of licensing

Divestment is one element in the strategic planning activities of firms operating in a dynamic global economy

Different entry modes are expected to have a differential impact on a firm's performance in a foreign market

Standardisation is a widely used market entry mode

A disadvantage of late entrants to a market is being able to "free-ride" on the investments of early movers