Deck 7: Entering Global Markets

Question 1

Which of the following reasons for engaging in international marketing is the weakest?

A) To dump surplus products at a low price in a foreign market
B) To expand beyond a saturated domestic market
C) To find new sources of profits
D) To add to a firm's competitive edge
E) To diversify and enlarge markets to hedge against economic crises

Answer 1

A

Question 2

__________________ connect the exporting company with potential clients abroad, eventually providing consulting support, but are not directly involved with buying and selling.

A) Export consortia
B) Brokers
C) Buying offices
D) Export companies
E) Trading companies

Answer 2

B

Question 3

Successful management practices should be based on four dimensions. Which of the following is NOT one of those dimensions?

A) Motivational programs
B) Coverage management
C) Size of the firm
D) Performance management
E) Capability-building programs

Answer 3

C

Question 4

International licensing, international franchising, piggyback, and strategic alliances are ______________ alternatives.

A) foreign indirect investment
B) intermediate export mode
C) equity-based
D) contract-based
E) universally accepted

Question 5

All of the following are categorizations of strategic alliances EXCEPT:

A) Contractual joint ventures
B) Contractual relationships between two or more firms that share resources to pursue a common goal
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.
D) Parts of the larger category of international business alliances
E) Equity joint ventures

Question 6

Which of the following is NOT one of the reasons for high rate of joint venture failure?

A) Market failure
B) Insufficient planning
C) Inadequate capitalization
D) Lack of leadership
E) Cultural and ideological differences

Question 7

Which of the following forms of Foreign Direct Investment (FDI) typically takes the longest to execute?

A) Creating a subsidiary
B) Greenfield investment
C) Merger, a form of brownfield investment
D) Acquisition, a form of brownfield investment
E) Creating an associate or affiliate

Question 8

The following are internal factors for a firm EXCEPT for __________________.

A) financial resources
B) human resources
C) production conditions
D) risk tolerance
E) time horizons

Question 9

The following are external factors EXCEPT for ______________.

A) market conditions
B) production conditions
C) environmental conditions
D) risk tolerances
E) government policies toward foreign trade

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?

A) Economic factors
B) Competition
C) Market structure
D) Consumer characteristics
E) Changes in national cultures

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.