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| 1 | |
ING has primarily entered foreign markets through |
| | A) | Acquisition |
| | B) | franchising |
| | C) | Green field investments |
| | D) | Mergers |
| | E) | Joint Ventures |
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| 2 | |
It is important to consider _______ once attractive markets have been identified. |
| | A) | the employees involved |
| | B) | the timing of entry |
| | C) | core competencies |
| | D) | home-country language |
| | E) | the domestic suppliers |
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| 3 | |
What are disadvantages associated with entering a foreign market before other international businesses? |
| | A) | Developing nation disadvantages |
| | B) | First-mover disadvantages |
| | C) | Entry-mode disadvantages |
| | D) | Strategic commitment disadvantages |
| | E) | Core competency disadvantages |
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| 4 | |
_______ include the costs of promoting and establishing a product offering, including the costs of educating customers. |
| | A) | First-mover advantages |
| | B) | Early entrant costs |
| | C) | Strategic commitments |
| | D) | Pioneering costs |
| | E) | Venture costs |
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| 5 | |
What do we call costs that an early entrant has to bear. These are costs that a later entrant can avoid. |
| | A) | pioneering costs. |
| | B) | entry-mode costs. |
| | C) | strategic commitment costs. |
| | D) | business expansion costs. |
| | E) | core competency costs. |
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| 6 | |
_______ is a decision that has a long-term impact and is difficult to reverse. |
| | A) | Strategic commitment |
| | B) | Core competency |
| | C) | Turnkey project |
| | D) | Cross-licensing agreement |
| | E) | None of these. |
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| 7 | |
Which of these is not a drawback of exporting? |
| | A) | High transportation costs |
| | B) | Tariffs |
| | C) | Delegating marketing to local agents in each country |
| | D) | It creates competitors in foreign countries |
| | E) | Exporting may not be appropriate if these are lower-cost locations for manufacturing the product abroad |
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| 8 | |
In which of the following does the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel? |
| | A) | Licensing agreement |
| | B) | Joint venture |
| | C) | Wholly owned subsidiary |
| | D) | Franchising arrangement |
| | E) | Turnkey project |
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| 9 | |
Which is a means of exporting process technology to other countries and is most common in manufacturing and processing industries. |
| | A) | Licensing agreement |
| | B) | Joint venture |
| | C) | Wholly owned subsidiary |
| | D) | Franchising arrangement |
| | E) | Turnkey project |
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| 10 | |
This is an arrangement whereby one party grants the rights to intangible property to another business, and receives a royalty fee. |
| | A) | joint venture. |
| | B) | licensing agreement. |
| | C) | turnkey project. |
| | D) | wholly owned subsidiary. |
| | E) | All of these. |
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| 11 | |
Which of these is a specialized form of licensing? |
| | A) | Turnkey project |
| | B) | Exporting |
| | C) | Franchising |
| | D) | Wholly owned subsidiary |
| | E) | All of these. |
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| 12 | |
Intangible property includes all of these except: |
| | A) | formulas. |
| | B) | copyrights. |
| | C) | patents. |
| | D) | products. |
| | E) | processes. |
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| 13 | |
All of the following are disadvantages of licensing, except: |
| | A) | it does not give a firm a tight control over manufacturing. |
| | B) | it requires a substantial upfront capital investment. |
| | C) | technological know-how is given to other firms which creates competitors. |
| | D) | it does not give a firm the tight control over marketing and strategy. |
| | E) | it severely limits a firm's ability to use profits from one country to support competitive attacks in another. |
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| 14 | |
"Boston Pizza" uses an American brand image, but it actually originated in: |
| | A) | Mexico |
| | B) | Edmonton, Canada |
| | C) | Madrid, Spain |
| | D) | Seville, Spain |
| | E) | Lisbon, Portugal |
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| 15 | |
__________ is employed primarily by service firms, while __________ is pursued primarily by manufacturing firms. |
| | A) | Franchising; licensing |
| | B) | Wholly owned subsidiary; turnkey project |
| | C) | Turnkey projects; franchising |
| | D) | Licensing; franchising |
| | E) | Wholly owned subsidiary; exporting |
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| 16 | |
Fuji-Xerox, a company formed by an agreement between Fuji Photo and Xerox-two otherwise independent firms-is an example of: |
| | A) | a licensing agreement. |
| | B) | a wholly owned subsidiary. |
| | C) | franchising. |
| | D) | a joint venture. |
| | E) | a cross-licensing agreement. |
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| 17 | |
In _______, the firm owns 100 percent of the stock. |
| | A) | franchising |
| | B) | licensing |
| | C) | wholly owned subsidiary |
| | D) | turnkey project |
| | E) | All of these. |
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| 18 | |
When a firm's competitive advantage is based on technological competence, which of these entry modes is preferable? |
| | A) | Franchising |
| | B) | Licensing |
| | C) | Wholly owned subsidiary |
| | D) | Turnkey project |
| | E) | All of these. |
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| 19 | |
Generally, the most costly method of serving a foreign market is(are): |
| | A) | turnkey projects. |
| | B) | licensing. |
| | C) | exporting. |
| | D) | joint ventures. |
| | E) | wholly owned subsidiaries. |
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| 20 | |
All of the following are benefits of acquisitions except: |
| | A) | they preempt their competitors. |
| | B) | they are less expensive when compared to green-field ventures. |
| | C) | they are quick to execute. |
| | D) | they are viewed to be less of a risk compared to green-field ventures. |
| | E) | All of these are benefits. |
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| 21 | |
The big advantage of _______ in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. |
| | A) | licensing |
| | B) | establishing a joint venture |
| | C) | franchising |
| | D) | acquiring a firm |
| | E) | establishing a green-field venture |
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| 22 | |
Which of the following is not a reason why acquisitions fail: |
| | A) | Overpaying for the assets of the acquired firm. |
| | B) | Clash between cultures of the firms. |
| | C) | Failure to realize synergies by integrating operations. |
| | D) | Differences in Management philosophy. |
| | E) | all of these are reasons why acquisitions fail. |
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