Site MapHelpFeedbackMixed Quiz
Mixed Quiz
(See related pages)



1

Costs incurred by a firm that is early to a market that firms that enter the market later avoid are called
A)first mover advantages
B)first mover disadvantages
C)early entrant costs
D)pioneering costs
E)start-up costs
2

Which of the following is not a disadvantage of exporting?
A)there may be a lower costs manufacturing location abroad
B)there may be high transport costs
C)there may be substantial costs to establish manufacturing operations in another country
D)high tariff barriers
E)local agents may have divided loyalties
3

____________ allows companies to achieve experience curve and location economies.
A)Exporting
B)Turnkey projects
C)Licensing
D)Franchising
E)A management contract
4

An arrangement in which a firm grants the rights to intangible property to another firm for a specified period of time in exchange for royalties is
A)a turnkey project
B)a licensing agreement
C)a management contract
D)a franchise agreement
E)a joint venture
5

A key disadvantage to ___________ is that shared ownership arrangements can lead to conflicts and battles for control.
A)management contracts
B)greenfield investments
C)licensing agreements
D)franchises
E)joint ventures
6

__________ may not be an attractive entry mode for firms because of the high costs and risks associated with this form of international expansion.
A)Joint ventures
B)Franchises
C)Wholly owned subsidiaries
D)Turnkey projects
E)Exporting
7

___________ offer(s) the ability to earn returns from process technology skills in countries where FDI is restricted.
A)Exporting
B)Licensing
C)Franchising
D)Turnkey contracts
E)Joint ventures
8

Service firms tend to prefer __________ as a means of entering foreign markets.
A)franchising and joint ventures
B)exporting and wholly owned subsidiaries
C)licensing and franchising
D)exporting and greenfield investments
E)turnkey contracts and joint ventures
9

Acquisitions fail for all of these reasons except
A)the acquisition was made to preempt a competitor
B)the acquiring firm paid too much for the assets of the acquired firm
C)there is a culture clash between the two firms
D)expected synergies do not materialize
E)there is in adequate pre-acquisition screening
10

Which of the following is not a disadvantage of establishing a greenfield investment?
A)they are slow to establish
B)there are no incumbent competitors to acquire
C)they are risky
D)there is uncertainty with future revenue and profit prospects
E)there is the possibility of being preempted by more aggressive global competitors who enter via acquisition
11

The three basic decisions that a firm must make when considering foreign expansion are which markets to enter, when to enter those markets, and on what scale.
A)True
B)False
12

Disadvantages associated with entering a foreign market before other international businesses are pioneering costs.
A)True
B)False
13

Firms that enter a market on a small scale are usually in a good position to build market share and capture first mover or early mover advantages.
A)True
B)False
14

The primary disadvantage of licensing is that the licensor has to bear the costs and risks of developing a foreign market.
A)True
B)False
15

McDonald's is an example of a firm that has grown internationally through cross-licensing agreements.
A)True
B)False
16

The most costly method of entering a foreign market is via a wholly owned subsidiary.
A)True
B)False
17

Concerns over quality control can make franchising unattractive.
A)True
B)False
18

When there is strong pressure for cost reductions, a combination of exporting and wholly owned subsidiaries is optimal.
A)True
B)False
19

A firm should avoid licensing and joint ventures when its core competence is based on control over proprietary technology.
A)True
B)False
20

When given the choice, a greenfield investment is always more desirable than an acquisition.
A)True
B)False





To learn more about the book this website supports, please visit its Information Center.
(c)2006 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.


Global Business TodayOnline Learning Center with Powerweb

Home > Chapter 12 > Mixed Quiz