Reference no: EM133299920
QUESTION 1
The risks associated with learning to do business in a new culture are less if the firm
A) enters a greenfield venture in the host country.
B) acquires an established host-country enterprise.
C) imposes strict marketing guidelines on how to do business.
D) realizes substantial location economies.
E) engages in global strategic coordination.
QUESTION 2
The text points out two things that can affect the value an international business creates in a foreign market: the sustainability of its product offering and the
A) per capita income in the foreign market.
B) nature of indigenous competition.
C) political stability of the foreign market.
D) population density in the foreign market.
E) type of political system in the foreign market.
QUESTION 3
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) withholding vital process technology from the local firm.
C) taking a minority equity interest in the operation.
D) establishing a joint venture with a local firm.
E) competing with the local firm in the global market.
QUESTION 4
Val-Com Inc. provides customer service support for a variety of industries. Their brand name is well known, and as a service firm, it does not have to protect any proprietary technology. What mode of entry is most suitable for service companies like Val-Com Inc. where its main asset is its brand name?
A) exporting
B) turnkey projects
C) licensing
D) cross-licensing
E) franchising
QUESTION 5
What form of entry into a foreign market gives a firm tight control for coordinating a globally dispersed value chain?
A) establishing a greenfield venture
B) setting up wholly owned marketing subsidiaries
C) signing joint-venture agreements
D) installing manufacturing units in locations with optimal factor conditions
E) using foreign marketing agents