Question 1

What gives a firm tight control for coordinating a globally dispersed value chain?

Accepted Answer

A)  Signing joint-venture agreements
B)  Installing manufacturing units in locations with optimal factor conditions
C)  Setting up wholly owned marketing subsidiaries
D)  Establishing a greenfield venture
E)  Using foreign marketing agentsF) B) and C)
G) A) and B)

Question 2

Why should a high-tech firm avoid selecting licensing as a mode of entry?

Accepted Answer

A)  Threat of creating efficient partners
B)  Risk of losing control over technology
C)  Fear of rapid imitation of core technology
D)  Lack of a transitory technological advantage
E)  Inability to deter development costsF) A) and B)
G) D) and E)

Question 3

Which of the following modes of entry into foreign markets can result in a lack of control over quality?

Accepted Answer

A)  Exporting
B)  Franchising
C)  Turnkey projects
D)  Wholly owned subsidiaries
E)  Joint venturesF) A) and B)
G) A) and C)

Question 4

Which of the following is a disadvantage of greenfield ventures?

Accepted Answer

A)  They have a higher potential for throwing up unpleasant surprises.
B)  It is much more difficult to build an organizational culture from scratch than to change the culture of an existing unit.
C)  Companies find it difficult to avoid falling into the trap of the hubris hypothesis.
D)  It is slower to establish than acquisitions.
E)  A firm does not have the freedom to build the kind of subsidiary that it wants.F) A) and C)
G) A) and B)

Question 5

The risks associated with learning to do business in a new culture are less if the firm:

Accepted Answer

A)  engages in global strategic coordination.
B)  imposes strict marketing guidelines on how to do business.
C)  enters a greenfield venture in the host country.
D)  realizes substantial location economies.
E)  acquires an established host-country enterprise.F) A) and E)
G) D) and E)

Question 6

What is a wholly owned subsidiary? List its advantages.

Accepted Answer

In a wholly owned subsidiary, the firm o...

Question 7

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?

Accepted Answer

A)  Capturing first-mover advantages
B)  Higher pioneering costs
C)  Rapid increase in market share
D)  Limited future growth potential
E)  Increase in sales volumeF) A) and E)
G) A) and D)

Question 8

According to Christopher Bartlett and Sumantra Ghoshal, firms from developing countries cannot succeed in foreign markets in the presence of other established global competitors.

Accepted Answer

A) True 
 B)False

Question 9

Describe the disadvantages of licensing as a mode of entry into the foreign market.

Accepted Answer

Licensing, a mode of entry into a foreig...

Question 10

Small-scale entrants are more likely to capture first-mover advantages associated with switching costs.

Accepted Answer

A) True 
 B)False

Exam 13: Entering Foreign Markets

The risks associated with learning to do business in a new culture are less if the firm:

Correct Answer
verified

Which of the following modes of entry into foreign markets can result in a lack of control over quality?

Correct Answer
verified

Why should a high-tech firm avoid selecting licensing as a mode of entry?

Correct Answer
verified

According to Christopher Bartlett and Sumantra Ghoshal, firms from developing countries cannot succeed in foreign markets in the presence of other established global competitors.

Correct Answer
verified

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?

Correct Answer
verified

What is a wholly owned subsidiary? List its advantages.

Correct Answer
verified
In a wholly owned subsidiary, the firm o...
View Answer

What gives a firm tight control for coordinating a globally dispersed value chain?

Correct Answer
verified

Describe the disadvantages of licensing as a mode of entry into the foreign market.

Correct Answer
verified
Licensing, a mode of entry into a foreig...
View Answer

Which of the following is a disadvantage of greenfield ventures?

Correct Answer
verified

Small-scale entrants are more likely to capture first-mover advantages associated with switching costs.

Correct Answer
verified

Exam 13: Entering Foreign Markets

The risks associated with learning to do business in a new culture are less if the firm:

Correct AnswerverifiedShow Answer

Which of the following modes of entry into foreign markets can result in a lack of control over quality?

Correct AnswerverifiedShow Answer

Why should a high-tech firm avoid selecting licensing as a mode of entry?

Correct AnswerverifiedShow Answer

According to Christopher Bartlett and Sumantra Ghoshal, firms from developing countries cannot succeed in foreign markets in the presence of other established global competitors.

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

What is a wholly owned subsidiary? List its advantages.

Correct AnswerverifiedIn a wholly owned subsidiary, the firm o...View AnswerShow Answer

What gives a firm tight control for coordinating a globally dispersed value chain?

Correct AnswerverifiedShow Answer

Describe the disadvantages of licensing as a mode of entry into the foreign market.

Correct AnswerverifiedLicensing, a mode of entry into a foreig...View AnswerShow Answer

Which of the following is a disadvantage of greenfield ventures?

Correct AnswerverifiedShow Answer

Small-scale entrants are more likely to capture first-mover advantages associated with switching costs.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In a wholly owned subsidiary, the firm o...
View Answer

Correct Answer
verified

Correct Answer
verified
Licensing, a mode of entry into a foreig...
View Answer

Correct Answer
verified

Correct Answer
verified