Exam 12: Strategies for Analyzing and Entering Foreign Markets

When two or more firms agree to work together and create a joint owned firm to promote mutual interest, ________ has occurred.

When British Petroleum ships crude oil from its storage facilities in Kuwait to its Australian subsidiary, ________ has occurred.

Manufacturers' agents specialize in the physical transportation of goods.

Which of the following is not a critical factor in assessing new market opportunities?

The ________ acts as a foreign sales department for domestic producers by selling those firms' goods in foreign markets.

The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it?

Which form of market entry should a firm use when it needs to coordinate the activities of its foreign subsidiaries to achieve strategic synergies?

Kodak focuses on developing photo editing software, and the firm has agreements with a Chinese manufacturer to assemble most Kodak cameras. Which entry mode for international business is used by Kodak?

________ is the most common form of international business activity.

Which of the following is NOT an aspect of the licensing process?

What are the advantages and disadvantages of acquisition?

A(n) ________ is a group of U.S. firms that operate within the same industry and are allowed by law to coordinate their export activities without fear of violating U.S. antitrust laws.

Which of the following is a characteristic of foreign direct investment?

Executives at Smithson Soda, a U.S. firm, have decided to enter the Chinese market through a licensing agreement with a beverage manufacturer located in Shanghai. Which of the following statements, if true, best supports this decision?

A(n) ________ is a firm that acts as its client's export department.

What is the difference between international licensing and international franchising? What are the advantages of each entry mode?

Assessing market potential is the second step in the process of foreign market analysis.

Delvin Pharmaceuticals, a U.S. firm, is considering the idea of entering the Japanese market. Which entry mode will Delvin most likely use?

Executives at Smithson Soda, a U.S. firm, have decided to enter the Chinese market through a licensing agreement with a beverage manufacturer located in Shanghai. Which of the following statements, if true, most likely undermines this decision?

Which of the following solicits domestic orders for foreign manufacturers on a commission basis?