Exam 12: Strategies for Analyzing and Entering Foreign Markets

Dunning's eclectic theory is useful in understanding which mode of entry to use.

In a brief essay, discuss how both exporting and FDI enable international businesses to maintain control in a foreign environment.

What is indirect exporting?

Explain the meaning of internalization advantages.

A(n) ________ is a firm directly engaged in importing and exporting a wide variety of goods for its own account.

________ are those that make it desirable for a firm to produce a good or service itself rather than contracting with another firm to produce it.

Foreign direct investment offers both high profit potential and high financial risk.

The most important trading companies in the global marketplace are Japan's sogo shosha.

________ are tangible or intangible resources owned by a firm which grant it a competitive advantage over its industry rivals.

What is an export management company? Why would an exporter hire an EMC? What are the two ways that EMCs operate?

Export management companies always take title to the goods.

What is the difference between a brownfield strategy and a greenfield strategy? Do you think one strategy is better than the other? Explain.

Which of the following is a method for foreign direct investment?

Gameware recently entered the German market. Gameware executives also wanted to enter the Canadian market but had to delay the entry because of limited resources. What type of costs will Gameware incur as a result of being unable to enter the Canadian market?

________ are those factors that affect the desirability of host country production relative to home country production.

When Hewlett-Packard buys microchips from Intel to use in manufacturing computers and then exports the completed computers to Europe, ________ has occurred.

Which of the following factors is not used to assess the competitive environment in a foreign market?

What is contract manufacturing? What are the advantages and disadvantages of contract manufacturing?

Gameware recently entered the German market. Gameware incurred significant costs associated with setting up a business operation in Frankfurt, transferring managers to Germany, and shipping equipment to the German facility. Gameware's expenses are best described as ________.

How is compensation typically addressed in international licensing and franchising contracts? What basic issues should be addressed in such contracts?