Exam 10: Entering Foreign Markets

A disadvantage of acquisitions is _____.

A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India or U.S.A or any other country.This is an example of _____.

Which of the following entry modes is a type of strategic alliance? 

How do foreign firms crack new markets against strong local competition?

Strategic goals and cultural and institutional distances influence the location of foreign entries.

With regard to foreign market entry,the resource-based view argues that foreign firms need to 

Liability of foreignness is _____.

_____ is the difference between two cultures along identifiable dimensions.

In the LLL framework,_____ refers to an emerging MNE's ability to identify and bridge gaps in its market.

Licensing and franchising are examples of equity modes of entry.

Which of the following is an advantage shared by both greenfield operations and acquisitions? 

In this age of globalization,customers don't discriminate against foreign firms.

The distinction between _____ is what defines an MNE from a firm that merely exports or imports.

Which of the following is true of modes of entry? 

Efficiency-seeking firms go to countries that have _____.

A firm that exports or imports,with or without FDI,is regarded as an MNE.

Equity modes tend to reflect relatively smaller commitments to overseas markets,whereas non-equity modes are indicative of relatively larger,harder-to-reverse commitments.

Explain briefly the meaning of liability of foreignness.Why is it difficult for companies to succeed in foreign markets?

Emerging MNEs primarily lack proprietary ownership of technology compared to MNEs from developed economies.

The "leverage" in the LLL framework focuses on an MNE's deep understanding of its customer needs and wants.