Exam 12: Strategies for Analyzing and Entering Foreign Markets

A firm specializing in low-priced, lower-quality goods will most likely find a high-income market more attractive than a low-income one.

Juanita recently purchased a FDX Computer. She needs assistance setting it up and contacts the firm's customer service center, which is located in Bangalore, India. FDX Computer most likely engages in which of the following?

All of the following are potential benefits of entering a new market except ________.

A sogo sosha is best described as a(n) ________.

The Nintendo Company manufactures electronic video consoles and game cartridges. Nintendo provides game design firms with technical specifications for how Nintendo consoles function. The game design firms create the games and then pay Nintendo a fee to manufacture those games. What mode of entry is described in this example?

What is a common disadvantage of using a greenfield strategy?

Trade policies usually have little effect on a firm's choice of entry mode.

What is the difference between direct costs and opportunity costs?

Which term refers to compensation under a licensing agreement?

When an export management company (EMC) acts as a commission agent for exporters, the EMC most likely ________.

When there is overcapacity in an industry, acquisition is the best strategy.

Which of the following is typically critical to a turnkey project?

Burger King has established a franchise agreement with an individual in Tokyo. Burger King will most likely provide the Japanese franchisee with all of the following EXCEPT ________.

Which term refers to a firm building and operating a facility before transferring ownership of the facility to another party?

One disadvantage of exporting is that it forces the firm to enter the foreign market quickly.

What is liability of foreignness?

Which of the following would most likely discourage an international firm from relying on exports as an entry mode?

Briefly describe the services provided by manufacturers' agents, manufacturers' export agents, export and import brokers, and freight forwarders.

________ offer services including export management companies, Webb-Pomerene associations, and international trading companies.

Objective measures of the potential for growth in an economy include all of the following except ________.