FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Entering Foreign Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is not an advantage of acquisitions?

A) They pre-empt the competition
B) They are quick to execute
C) They allow a firm to rapidly build its presence in a new market
D) They are less risky than green-field ventures
E) They are the least expensive form of expansion

F) D) and E)
G) A) and E)

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

If a firm's competitive advantage is based on control over proprietary technological know how, which of the following foreign entry modes should be avoided?

A) Exporting and joint ventures
B) Turnkey projects and franchising
C) Wholly owned subsidiaries and franchising
D) Joint ventures and licensing
E) Acquisitions

F) A) and B)
G) All of the above

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Which foreign market entry strategy has the following disadvantages: lack of long-term market presence, may inadvertently create a competitor, risk selling a firm's competitive advantage?

A _____________ entails establishment of a firm that is jointly owned by two or more otherwise independent firms.

The greater the pressures for cost reductions are, the most likely a firm will want to pursue some combination of:

Greenfield ventures are slower to establish than acquisition, but they are less risky.

If Gateway and Compaq established a jointly owned entity for the purpose of building computers to export to Asia, that would be an example of a ___________________ form of foreign market entry.

Most manufacturing firms start their global expansion by serving a foreign market before exporting.

Which of the following is a disadvantage of joint ventures?

From the perspective of a domestic firm, what are the advantages and disadvantages of licensing the rights to the company's production process and trademark to a firm in a foreign country? What are some of the ways that a firm can reduce the risk of losing its proprietary know-how to foreign companies through licensing agreements?

Suzi's Sleds, Inc.is considering entering Japan, where there are no other incumbent competitors to acquire.Suzi's would do best in Japan with a(n) :

_______________ has the following advantages: firms benefit from a local partner's knowledge of the host country's competitive conditions, a firm shares development costs with a local partner, and in many countries political considerations necessitate this form of entry.

All of the following are pioneering costs except the costs of:

The managerial hypothesis suggests that top managers typically overestimate their ability to create value from an acquisition, primarily because rising to the top of a corporation has given them an exaggerated sense of the own capabilities.

The ______________ entrant is more likely than the ________________ entrant to be able to capture the first-mover advantages associated with demand pre-emption, scale economies, and switching costs.

Franchising is employed primarily by service firms, whereas licensing is pursued primarily by manufacturing firms.

Consider the following scenario: Ballard Manufacturing wants to sell its products overseas, but only if it can act on its own and manufacturer its product in a central location.Based on these objectives, the appropriate foreign entry mode for Ballard is:

According to the text, __________________ tend to change the competitive playing field and unleash a number of changes, some desirable and some undesirable.

Acquisitions are quick to execute.

In a recent article, Bartlett and Ghoshal pointed out the ability that businesses based in developing nations have to enter foreign markets and become: