Question 1

Which of the following reasons for engaging in international marketing is the weakest?&#10;A) To dump surplus products at a low price in a foreign market&#10;B) To expand beyond a saturated domestic market&#10;C) To find new sources of profits&#10;D) To add to a firm's competitive edge&#10;E) To diversify and enlarge markets to hedge against economic crises

Accepted Answer

Dumping surplus products at a low price in a foreign market is generally considered an unethical and potentially illegal practice, making it the weakest reason for engaging in international marketing. It can lead to trade disputes and damage a company's reputation.

Question 2

__________________ connect the exporting company with potential clients abroad, eventually providing consulting support, but are not directly involved with buying and selling.&#10;A) Export consortia&#10;B) Brokers&#10;C) Buying offices&#10;D) Export companies&#10;E) Trading companies

Accepted Answer

Brokers typically connect the exporting company with potential clients abroad and may provide consulting support, but they do not directly engage in buying and selling themselves. They act as intermediaries.

Question 3

Successful management practices should be based on four dimensions. Which of the following is NOT one of those dimensions?&#10;A) Motivational programs&#10;B) Coverage management&#10;C) Size of the firm&#10;D) Performance management&#10;E) Capability-building programs

Accepted Answer

The four dimensions typically referenced in successful management practices include motivational programs, coverage management, performance management, and capability-building programs. The size of the firm is not considered a dimension of management practices, as these practices can be applied regardless of the firm's size.

Question 4

International licensing, international franchising, piggyback, and strategic alliances are ______________ alternatives.&#10;A) foreign indirect investment&#10;B) intermediate export mode&#10;C) equity-based&#10;D) contract-based&#10;E) universally accepted

Accepted Answer

These alternatives are contract-based as they involve agreements between companies to operate in foreign markets without direct investment.

Question 5

All of the following are categorizations of strategic alliances EXCEPT:&#10;A) Contractual joint ventures&#10;B) Contractual relationships between two or more firms that share resources to pursue a common goal&#10;C) Non-equity agreements in which partners share some strategic assets such as technology or trademarks to gain access to resources that one or both firms do not possess.&#10;D) Parts of the larger category of international business alliances&#10;E) Equity joint ventures

Accepted Answer

The answer of All of the following are categorizations of...

Question 6

Which of the following is NOT one of the reasons for high rate of joint venture failure?&#10;A) Market failure&#10;B) Insufficient planning&#10;C) Inadequate capitalization&#10;D) Lack of leadership&#10;E) Cultural and ideological differences

Accepted Answer

Market failure is not typically cited as a direct reason for the high rate of joint venture failure. Instead, factors such as insufficient planning, inadequate capitalization, lack of leadership, and cultural and ideological differences are more directly related to the internal dynamics and management of the joint venture itself.

Question 7

Which of the following forms of Foreign Direct Investment (FDI) typically takes the longest to execute?&#10;A) Creating a subsidiary&#10;B) Greenfield investment&#10;C) Merger, a form of brownfield investment&#10;D) Acquisition, a form of brownfield investment&#10;E) Creating an associate or affiliate

Accepted Answer

Greenfield investments typically take the longest to execute because they involve starting a new venture from scratch, including building new facilities, hiring staff, and establishing operations in a foreign country. This process is more time-consuming compared to mergers, acquisitions, or creating subsidiaries or affiliates, which often utilize existing resources.

Question 8

The following are internal factors for a firm EXCEPT for __________________.&#10;A) financial resources&#10;B) human resources&#10;C) production conditions&#10;D) risk tolerance&#10;E) time horizons

Accepted Answer

Production conditions are often influenced by external factors such as supply chain issues, regulatory environments, and market demands, making them not exclusively internal to a firm.

Question 9

The following are external factors EXCEPT for ______________.&#10;A) market conditions&#10;B) production conditions&#10;C) environmental conditions&#10;D) risk tolerances&#10;E) government policies toward foreign trade

Accepted Answer

Risk tolerances are internal factors related to an organization's or individual's willingness to take risks, unlike the other options which are external factors.

Question 10

Market entry is not static, and entry modes may have to be restructured as environmental conditions change. Which of the following is NOT one of the typically dynamic market entry conditions?&#10;A) Economic factors&#10;B) Competition&#10;C) Market structure&#10;D) Consumer characteristics&#10;E) Changes in national cultures

Accepted Answer

Changes in national cultures are generally considered more static compared to economic factors, competition, market structure, and consumer characteristics, which are dynamic and can significantly influence market entry strategies. National cultures evolve, but at a much slower pace than the other factors listed.

Question 11

Consider the assessments that were identified in Chapters 2, 3 and 4, and identify what critical factors must be assessed to be able to make the best market entry mode decision.

Accepted Answer

The answer of Consider the assessments that were identified in...

Deck 7: Entering Global Markets