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
QUESTION Which of the following is an advantage of choosing exporting as a mode of entry into foreign markets? A. A firm can avoid the cost of establishing manufacturing operations in the host country. B. A firm shares the development costs and risks with its host partner. C. A firm can earn returns from process […]
Date: September 3rd, 2020
QUESTION How can firms avoid incurring high transport costs when exporting bulk products? A. By taking a minority equity interest B. By entering into a turnkey project with a foreign firm C. By manufacturing bulk products regionally D. By setting up subsidiaries irrespective of market reach E. By reducing the quantity of the product offering […]
Date: September 3rd, 2020
QUESTION Which of the following is a course of action suggested by Christopher Bartlett and Sumantra Ghoshal for companies based in developing nations? A. Build up financial resources to match those of the largest global competitors. B. Enter foreign markets at a similar time and scale as multinational companies. C. Enter markets rapidly and exit […]
Date: September 3rd, 2020
QUESTION Which of the following is an advantage of turnkey projects as a mode of entry into foreign markets? A. It is an ideal way to gain entry into a country where FDI is not limited by government regulations. B. It is a useful strategy to earn great returns from the know-how of a technologically […]
Date: September 3rd, 2020
QUESTION Which of the following describes a turnkey project? A. Granting rights to intangible property to other firms B. Establishing firms that are jointly owned by two or more otherwise independent firms C. Exporting process technology to other countries D. Setting up wholly owned subsidiaries in foreign nations E. Selling products produced in one country […]
Date: September 3rd, 2020
QUESTION In which of the following modes of entry into foreign markets does a firm agree to set up an operating plant for a foreign client and hand over the plant when it is fully operational? A. Franchising agreement B. Turnkey project C. Licensing agreement D. Wholly owned subsidiary E. Joint venture ANSWER B
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
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 […]
Date: September 3rd, 2020
