Question 1

_____ 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.

Accepted Answer

A)   Indirect exports
B)   Direct exports
C)   Turnkey projects
D)   Acquisitions

Question 2

An advantage of joint ventures is _____.

Accepted Answer

A)   the protection of know-how
B)   the access to partners' assets
C)   the ease of global coordination
D)   the complete equity and operational control

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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.

Accepted Answer

A)   BOT agreement
B)   R&D contract
C)   JV
D)   WOS

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Companies with market-seeking strategic goals search for _____.

Accepted Answer

A)   abundance of strong market demand and customers willing to pay
B)   economies of scale and abundance of low cost factors
C)   abundance of innovative individuals, firms, and universities
D)   particular foreign locations where the required resources are found

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)   Licensing
B)   Wholly owned subsidiary
C)   Acquisition
D)   Export

Question 9

Co-marketing refers to _____.

Accepted Answer

A)   a project in which clients pay contractors to market and distribute the product/service
B)   outsourcing agreements in marketing between firms
C)   efforts among a number of firms to jointly market their products and services
D)   selling the rights to intellectual property to another firm for a royalty fee

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Identify the advantages and disadvantages that pertain to first movers.

Accepted Answer

First-mover advantages include: (1)Pre-e...

Question 12

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

Accepted Answer

A)   franchising
B)   turnkey projects
C)   licensing
D)   co-marketing

Question 13

The preemption of scarce resources is a first mover advantage.

Accepted Answer

A) True 
 B)False

Question 14

_____ is the difference between two cultures along identifiable dimensions.

Accepted Answer

A)   Cultural cringe
B)   Cultural distance
C)   Reverse culture shock
D)   Culture shock

Question 15

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

Accepted Answer

A) True 
 B)False  True

Question 16

Turnkey projects cannot be established without FDI.

Accepted Answer

A) True 
 B)False  False

Question 17

Which of the following is an advantage of direct exports?

Accepted Answer

A)   No trade barriers
B)   Low transportation costs for bulky products
C)   Avoid export processes
D)   Better control over distribution

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)   Acquisitions
B)   Joint ventures
C)   Turnkey projects
D)   Green-fields C

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 10: Entering Foreign Markets

_____ 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.

Correct AnswerverifiedShow Answer

An advantage of joint ventures is _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Companies with market-seeking strategic goals search for _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Co-marketing refers to _____.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Identify the advantages and disadvantages that pertain to first movers.

Correct AnswerverifiedFirst-mover advantages include: (1)Pre-e...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The preemption of scarce resources is a first mover advantage.

Correct AnswerverifiedShow Answer

_____ is the difference between two cultures along identifiable dimensions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

Turnkey projects cannot be established without FDI.

Correct AnswerverifiedFalse

Which of the following is an advantage of direct exports?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

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First-mover advantages include: (1)Pre-e...
View Answer

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True

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False

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C

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