Exam 9: International Strategy

Explain the four different modes of international market entry.

Blue Corp., a car manufacturing company, reaches its five-year goal of becoming market leader in the domestic market.Upon reaching saturation in the local market, it decides to expand its market globally in order to increase its profits.Which of the following is likely to be the primary reason for Blue to enter the global market?

Leo Inc., a U.S.-based firm, decides to enter a foreign market through offshoring.Which of the following is likely to be the primary reason for Leo to enter the new market?

_____ distance is usually measured as per capita gross domestic product.

Kitsch Along Inc., a cloth manufacturer, raises funds in a country where interest rates are lower than the United States.In this case, the type of arbitrage strategy adopted by the company is primarily _____.

Which of the following statements is true of wholly owned subsidiaries as means of entering international markets?

In the context of modes of international market entry, which of the following statements is true of a joint venture?

Granting another business the permission to use or sell a firm's product, technology, or process is called _____.

With respect to distance between a foreign and a domestic market, administrative distance is likely to be more when the new market:

Nate, the CEO of Venus Corp., decides to make some changes to the strategies adopted to operate in global market.Although he still remains with the multidomestic strategy, he decides to manage the variations and the costs incurred through it by allowing a local firm to take up a franchise.This ensures that Venus does not have to work on adapting the product to the local needs.Which strategy has Nate adopted to manage the variations?