Exam 12: Strategies for Analyzing and Entering Foreign Markets

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Management contracts are attractive because they allow firms to earn additional revenues without incurring any investment risks or obligations.

(True/False)
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What are sogo soshas? What advantages do they offer exporters? Give three examples of prominent sogo soshas.

(Essay)
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When the licensor fully investigates market opportunities and the abilities of its licensees, licensing has a relatively low financial risk.

(True/False)
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________ occur(s) when a firm sells its products to a domestic customer, which in turn exports the product, in either its original form or a modified form.

(Multiple Choice)
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Pharmaceutical firms routinely use licensing as their entry mode.

(True/False)
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________ for exporting are those that push a firm into foreign markets.

(Multiple Choice)
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According to the eclectic theory, all of the following should be considered when choosing a mode of entry EXCEPT ________.

(Multiple Choice)
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Firms should use both objective and subjective measures when considering the potential for growth in an economy.

(True/False)
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Which form of exporting is used by firms in order to lower their production costs?

(Multiple Choice)
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The greater the investment costs incurred by the licensee, the longer is the likely duration of the licensing agreement.

(True/False)
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Webb-Pomerene associations play a major role in international business.

(True/False)
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Executives at KBH Enterprises are considering the idea of entering the Taiwanese market through a licensing agreement. Which of the following factors is LEAST relevant to the firm's assessment of the Taiwanese market?

(Multiple Choice)
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What is the first step in selecting a foreign market?

(Multiple Choice)
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Ownership advantages are always tangible resources.

(True/False)
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Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?

(Multiple Choice)
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Which of the following is not a disadvantage of exporting?

(Multiple Choice)
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Which of the following is not a mode of entry into foreign markets?

(Multiple Choice)
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The number of joint ventures being formed today is on the decline.

(True/False)
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Which of the following is NOT a characteristic of exporting?

(Multiple Choice)
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BTV Enterprises specializes in the physical transportation of goods for its clients by arranging customs documentation and obtaining transportation services. BTV Enterprises is most likely a(n) ________.

(Multiple Choice)
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