QUESTION In exporting, problems with local marketing agents can be overcome by: A. selling intangible property to a franchisee and insisting on rules to conduct the business. B. changing agents frequently. C. engaging in turnkey projects and exporting process technology to foreign firms. D. entering into cross-licensing agreements with foreign firms. E. setting up wholly […]
QUESTION Turnkey projects being short-term propositions can be disadvantageous for a firm if a country subsequently proves to be a major market for the output of the process that has been exported. The firm can get around this problem by: A. selling competitive advantage to competitors. B. competing with the local firm in the global […]
QUESTION Licensing is NOT attractive to which of the following firms? A. Firms lacking the capital to develop operations overseas B. Firms unwilling to commit substantial financial resources to an unfamiliar market C. Firms requiring tight control of operations for realizing experience curve and location economies D. Firms wanting to explore markets but prohibited from […]
QUESTION In terms of licensing, which of the following is an intangible property? A. Infrastructure B. Machinery C. Leased equipment D. Advanced computing systems E. Patent ANSWER E
QUESTION Which of the following is an example of an industry in which cross-licensing agreements are increasingly becoming common? A. Glass-blowing B. Biotechnology C. Organic farming D. Basketry E. Weaving ANSWER B
QUESTION Franchising as a mode of entry into foreign markets is employed primarily by: A. service firms. B. manufacturing companies. C. online outfits. D. high-technology companies. E. primary industries. ANSWER A
QUESTION According to Christopher Bartlett and Sumantra Ghoshal, how can local companies differentiate themselves from foreign multinationals? A. By licensing their core technologies B. By entering into turnkey projects C. By standardizing their product offerings D. By focusing on market niches E. By raising trade barriers ANSWER D
QUESTION Which of the following is a drawback of licensing as a mode of entry into foreign markets? A. The licensor has to bear all costs and risks associated with developing a foreign market. B. Licensing does not give a firm tight control over manufacturing, marketing, and strategy. C. Licensing does not benefit firms lacking […]
QUESTION Small-scale entry into a foreign market makes it difficult to build market share because it: A. necessitates rapid entry into a foreign market. B. is associated with a lack of commitment demonstrated by the foreign firm. C. leads to escalating strategic commitments. D. requires that extra time be spent in analyzing a foreign market. […]
QUESTION Which of the following is an advantage of franchising as a mode of entry into foreign markets? A. The franchiser is relieved of many of the costs and risks of opening a foreign market on its own. B. The franchiser is allowed to take profits out of one country to support competitive attacks in […]
