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| 1 | |
ING has primarily entered markets through acquisitions |
| | A) | True |
| | B) | False |
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| 2 | |
The three decisions that a firm contemplating foreign expansion must make are which markets to enter, when to enter those markets, and on what scale. |
| | A) | True |
| | B) | False |
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| 3 | |
Other things being equal, the benefit, cost, risk trade-off is likely to be most favourable in the case of politically stable developed and developing nations that have free market systems, and where there is a dramatic upsurge in either inflation rates or private sector debt. |
| | A) | True |
| | B) | False |
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| 4 | |
Pioneering costs are not borne by later entries to the market |
| | A) | True |
| | B) | False |
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| 5 | |
A strategic commitment has a long-term impact and is easy to reverse. |
| | A) | True |
| | B) | False |
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| 6 | |
Foreign agents often carry the products of competing firms and may have divided loyalties |
| | A) | True |
| | B) | False |
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| 7 | |
Because it exposes the firm to unacceptable political and/or economic risks for a longer-term, a turnkey strategy is more risky than the conventional FDI. |
| | A) | True |
| | B) | False |
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| 8 | |
Under a franchising agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. |
| | A) | True |
| | B) | False |
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| 9 | |
Franchising is employed primarily by service firms |
| | A) | True |
| | B) | False |
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| 10 | |
Well known franchiser "Boston Pizza" originated in Boston. |
| | A) | True |
| | B) | False |
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| 11 | |
Quality control is a more significant disadvantage of franchising. |
| | A) | True |
| | B) | False |
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| 12 | |
In a wholly owned subsidiary, the firm owns 50% of the stock |
| | A) | True |
| | B) | False |
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| 13 | |
Establishing a wholly owned subsidiary is generally the least costly method of serving a foreign market. |
| | A) | True |
| | B) | False |
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| 14 | |
The competitive advantage of many service firms is not necessarily based on management know-how. |
| | A) | True |
| | B) | False |
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| 15 | |
If a firm is seeking to enter a market where there are already well-established incumbent enterprises and where global competitors are also interested in establishing a presence, it may pay the firm to enter via a green-field venture. |
| | A) | True |
| | B) | False |
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| 16 | |
After an acquisition many acquired companies experience high management turnover. |
| | A) | True |
| | B) | False |
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| 17 | |
Greenfield ventures are slower to establish |
| | A) | True |
| | B) | False |
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