Exam 10: International Entry Strategies

Outbound (market) logistics are based largely on proximity to major buyers and end consumers.

Contrarily, later movers who use a wait-and-see strategy usually do not gain from lessons from the earlier movers.

International acquisition is an across border transaction in which a foreign investor acquires an established local firm and makes the acquired local firm a subsidiary business within its global portfolio.

Build-operate-transfer is a "turn key" investment.

In today's increasingly integrated marketplace, where demand level, consumption sophistication, and rivalry intensity are all changing drastically, the decision of when to embark on international expansion is critical for transactional operations.

_____________ are third parties that specialize in facilitating imports and exports.

Early movers also often pay __________________ costs in learning and adapting to local environments and in countervailing imitation.

_____________________movers can "piggy back" on early investment if imitation is easy, thereby gaining profit without having to pay as many innovators.

Which of the following is NOT a component of FDI policy?

Later movers who use a________________strategy gain from lessons from early movers.

Barter trade occurs either between individuals, between governments, between firms, or between government and firm, all from one different country.

Early movers gain from____________________________.

The statutory tax rate determines the general level of the tax burden shouldered by firms.

In today's increasingly integrated global marketplace, where demand level, consumption sophistication, and rivalry intensity are all changing drastically, the decision on when to embark on international expansion is critical for transnational operations.

Late investors do suffer from the preceding uncertainties and risks.

International entry strategies concern where (location selection), when (timing of entry), and how (entry-mode selection) international companies should enter and invest in a foreign territory during international expansion.

The ____________ rate determines the general level of the tax burden shouldered by firms.

A foreign investor may consider establishing an______________ enterprise to achieve investment in subsidiary projects.

Timing of entry is not as important once the company identifies its environments and opportunities.

Market pioneers may benefit from the advantages of holding technical leadership, seizing scarce resources, and creating buyer switching costs.