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
Date: September 3rd, 2020
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
Date: September 3rd, 2020
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
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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. […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
QUESTION Which of the following is the most likely outcome of a foreign firm entering a developed nation on a small scale after other international businesses in the firm’s industry? A. Capturing first-mover advantages B. Higher pioneering costs C. Rapid increase in market share D. Limited future growth potential E. Increase in sales volume […]
Date: September 3rd, 2020
QUESTION Which of the following is a disadvantage of franchising? A. The franchiser has to bear development costs and risks associated with foreign expansion. B. Franchising leads to undesirable results for service firms. C. It is difficult to maintain quality control across foreign franchisees that are distant from the franchiser. D. The franchiser has no […]
Date: September 3rd, 2020
QUESTION Which of the following is a disadvantage of small-scale entry for an international firm considering foreign expansion? A. The possibility of escalating commitment leading to major financial losses B. The limited availability of resources for use in other markets C. The lack of flexibility associated with strategic commitments D. The increase in economic exposure […]
Date: September 3rd, 2020
QUESTION Which of the following entry modes into a foreign market best serves a high-tech firm? A. Turnkey projects B. Franchising C. Wholly owned subsidiaries D. Joint ventures E. Exporting ANSWER C
Date: September 3rd, 2020
