Question 1

What is the meaning of ownership advantages? Give an example.

Accepted Answer

Ownership advantages are tangible or intangible resources owned by a firm which grant a competitive advantage over its industry rivals. An example is the brand image and luxurious reputation of Dom Perignon champagne.

Question 2

Name five critical factors in assessing new market opportunities.

Accepted Answer

They are product-market dimensions, major product-market differences, structural characteristics of the national product market, competitor analysis, potential target markets, relevant trends, explanation of change, success factors, and strategic options.

Question 3

Which of the following is not one of the three steps in increasing market share, revenue, and profits?

Accepted Answer

A)  Assess alternative markets. 
B)  Evaluate respective costs, benefits, and risks. 
C)  Perform a situation analysis. 
D)  Select market with most potential for entry or expansion. 
A)  Assess alternative markets. 
B)  Evaluate respective costs, benefits, and risks. 
C)  Perform a situation analysis. 
D)  Select market with most potential for entry or expansion. C

Question 4

Exporting is the most complicated mode of internationalizing due to the issue of tariffs and nontariff barriers.

Accepted Answer

A) True 
 B)False

Question 5

Tanya is employed by an export management company that provides its services to many exporters in the Chicago area. Tanya would LEAST likely be responsible for ________.

Accepted Answer

A)  shipping goods 
B)  clearing customs 
C)  creating strategic marketing plans 
D)  giving advice about consumer needs 
A)  shipping goods 
B)  clearing customs 
C)  creating strategic marketing plans 
D)  giving advice about consumer needs

Question 6

Reactive motivations for exporting are those that pull a firm into foreign markets as a result of opportunities available there.

Accepted Answer

A) True 
 B)False

Question 7

Turnkey projects and foreign direct investment are both risky modes for entering foreign markets. Briefly describe the risks associated with each mode.

Accepted Answer

Turnkey projects are risky because of po

Question 8

Why are international turnkey projects usually administered by large construction firms?

Accepted Answer

International turnkey projects are usual

Question 9

Government stability is an important factor in foreign market assessment.

Accepted Answer

A) True 
 B)False

Question 10

McDonald's, Pizza Hut, and KFC all rely on franchising for their international expansion.

Accepted Answer

A) True 
 B)False

Question 11

In comparison to licensing, franchising offers a firm ________.

Accepted Answer

A)  less taxation 
B)  more control 
C)  higher profit margins 
D)  fewer financial risks 
A)  less taxation 
B)  more control 
C)  higher profit margins 
D)  fewer financial risks

Question 12

Intracorporate transfers are common in the service sector.

Accepted Answer

A) True 
 B)False

Question 13

Describe the specialized entry modes for international business.

Accepted Answer

Companies can take advantage of internat

Question 14

Vinson Bicycles, a U.S. firm, is considering the idea of entering the EU market through an international licensing agreement. What is the main disadvantage of this entry method for Vinson?

Accepted Answer

A)  significant financial and political risks 
B)  foreign investment restrictions 
C)  limited market opportunities 
D)  high tariff costs 
A)  significant financial and political risks 
B)  foreign investment restrictions 
C)  limited market opportunities 
D)  high tariff costs

Question 15

When deciding which mode of entry to use, a firm must consider things like ownership advantages, location advantages, and internalization advantages.

Accepted Answer

A) True 
 B)False

Question 16

Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?

Accepted Answer

A)  joint venture strategy 
B)  brownfield strategy 
C)  acquisition strategy 
D)  greenfield strategy 
A)  joint venture strategy 
B)  brownfield strategy 
C)  acquisition strategy 
D)  greenfield strategy

Question 17

Unlike an export management company, an international trading company ________.

Accepted Answer

A)  offers customer financing 
B)  facilitates customs documentation 
C)  manages international transportation logistics 
D)  participates in exporting and importing activities 
A)  offers customer financing 
B)  facilitates customs documentation 
C)  manages international transportation logistics 
D)  participates in exporting and importing activities

Question 18

Which mode of entry has the most potential to create a future competitor?

Accepted Answer

A)  licensing 
B)  exporting 
C)  turnkey project 
D)  contract manufacturing 
A)  licensing 
B)  exporting 
C)  turnkey project 
D)  contract manufacturing

Question 19

________ can bring together international buyers and sellers of standardized commodities like coffee and grains.

Accepted Answer

A)  A manufacturers' agent 
B)  An export and import broker 
C)  A freight forwarder 
D)  A sogo sosha 
A)  A manufacturers' agent 
B)  An export and import broker 
C)  A freight forwarder 
D)  A sogo sosha

Question 20

Embedded technology is often best transferred through an equity mode.

Accepted Answer

A) True 
 B)False

What is the meaning of ownership advantages? Give an example.

Name five critical factors in assessing new market opportunities.

Which of the following is not one of the three steps in increasing market share, revenue, and profits?

Exporting is the most complicated mode of internationalizing due to the issue of tariffs and nontariff barriers.

Tanya is employed by an export management company that provides its services to many exporters in the Chicago area. Tanya would LEAST likely be responsible for ________.

Reactive motivations for exporting are those that pull a firm into foreign markets as a result of opportunities available there.

Turnkey projects and foreign direct investment are both risky modes for entering foreign markets. Briefly describe the risks associated with each mode.

Why are international turnkey projects usually administered by large construction firms?

Government stability is an important factor in foreign market assessment.

McDonald's, Pizza Hut, and KFC all rely on franchising for their international expansion.

In comparison to licensing, franchising offers a firm ________.

Intracorporate transfers are common in the service sector.

Describe the specialized entry modes for international business.

Vinson Bicycles, a U.S. firm, is considering the idea of entering the EU market through an international licensing agreement. What is the main disadvantage of this entry method for Vinson?

When deciding which mode of entry to use, a firm must consider things like ownership advantages, location advantages, and internalization advantages.

Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?

Unlike an export management company, an international trading company ________.

Which mode of entry has the most potential to create a future competitor?

________ can bring together international buyers and sellers of standardized commodities like coffee and grains.

Embedded technology is often best transferred through an equity mode.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 12: Strategies for Analyzing and Entering Foreign Markets

What is the meaning of ownership advantages? Give an example.

Name five critical factors in assessing new market opportunities.

Which of the following is not one of the three steps in increasing market share, revenue, and profits?

Exporting is the most complicated mode of internationalizing due to the issue of tariffs and nontariff barriers.

Tanya is employed by an export management company that provides its services to many exporters in the Chicago area. Tanya would LEAST likely be responsible for ________.

Reactive motivations for exporting are those that pull a firm into foreign markets as a result of opportunities available there.

Turnkey projects and foreign direct investment are both risky modes for entering foreign markets. Briefly describe the risks associated with each mode.

Why are international turnkey projects usually administered by large construction firms?

Government stability is an important factor in foreign market assessment.

McDonald's, Pizza Hut, and KFC all rely on franchising for their international expansion.

In comparison to licensing, franchising offers a firm ________.

Intracorporate transfers are common in the service sector.

Describe the specialized entry modes for international business.

Vinson Bicycles, a U.S. firm, is considering the idea of entering the EU market through an international licensing agreement. What is the main disadvantage of this entry method for Vinson?

When deciding which mode of entry to use, a firm must consider things like ownership advantages, location advantages, and internalization advantages.

Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex?

Unlike an export management company, an international trading company ________.

Which mode of entry has the most potential to create a future competitor?

________ can bring together international buyers and sellers of standardized commodities like coffee and grains.

Embedded technology is often best transferred through an equity mode.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters