Exam 10: Entering Foreign Markets

Cultural distance is the difference between two cultures along some identifiable dimensions.

Turnkey projects cannot be established without FDI.

Which of the following is a non-equity mode of entry?

Which of the following is an advantage of direct exports?

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

_____ is the difference between two cultures along identifiable dimensions.

Greenfield operations are a type of wholly owned subsidiary that does not require any FDI.

Identify the advantages and disadvantages that pertain to first movers.

Companies with market-seeking strategic goals search for _____.

In _____,clients pay contractors to design and construct new facilities and train personnel.

Agglomeration explains why certain cities and regions can attract businesses even in the absence of obvious geographic advantages.

Non-equity modes do not require the establishment of independent organizations overseas.

Liability of foreignness is the inherent disadvantage firms experience in home countries.

_____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.

The preemption of scarce resources is a first mover advantage.

A(n)_____ is a non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.

An advantage of joint ventures is _____.

Market-seeking firms go to countries that have a strong demand for their products and services.

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

Co-marketing refers to _____.