Foreign direct investment is market entry strategy

Assignment Help Operation Management

Reference no: EM132109388

1. Companies grow internationally in order to:

Keep up with domestic and foreign competition

Minimize seasonal sales fluctations

Overcome low growth in domestic or existing markets

All of the above

2. Company A manufactures their products in the USA and sells them internationally through distributors located in foreign countries. This is a form of what market entry strategy?

Merger and Acquisition

Licensing

Joint Venture

Exporting

3. Which market entry strategy provides the most amount of control, along with the most amount of cost?

Exporting a franchise

Exporting equipment

Opening a wholly-owned subsidiary

Entering into a licensing agreement

4. When analyzing potential export markets, what factor could directly affect your product price?

Import tariffs and duties

Interest rates for capital investments

Cost of labor in the foreign market

Stock price values of distribution partners

5. BestBuy entered the Chinese market first through a sourcing office. What market entry strategy did BestBuy choose when they entered the Chinese market in order to sell into China?

Merger & Acquisition

Direct to consumer exporting

Indirect exporting

Franchising

6. The World Bank's Economy Rankings for ease of doing business incorporates the following rankings, except:

Dealing with construction permits

Cost of labor for construction

Access electricity

Enforcement of contracts

7. When analyzing market entry into China, Haagen Daz found that the only reason for charging high prices was because the Chinese viewed ice cream as a luxury.

True

False

8. Foreign Direct Investment is a market entry strategy that can include which tactic?

Outsourcing manufacturing

Licensing of technology

Merger and acquisition

Sales through distribution

9. A company is seeking to expand their sales into foreign markets. Their product is a large, yet relatively low-tech piece of equipment. Shipping the product for export is generally not cost effective. As such, they are seeking to find international market in which they could build a factory or acquire a company with similar assets. A primary resource that will compare the top 25 countries for such an investment would be:

Country Commercial Guides

Delloite International Tax Guides

The CIA World Factbook

FDI Confidence Index

10. The most common tactic for market entry, and the one that balances control vs. cost the most evenly, when exporting is through:

Wholly owned subsidiaries

Distributors

Export Management Companies

Sales Representatives

11. These type of companies act as an export department for one or more manufacturers.

Sales representative companies

Export management/trading companies

Freight forwarders

Marketing consultancies

12. When working with international partners, its not necessarily to meet with them face-to-face thanks to modern technology.

True

False

13. Which is an attribute that international sales team may have that is least helpful to success?

High drive for sales at any cost

Committed to travel and work independently

Flexible in their approach to sales

Technology proficiency

14. Two companies form an agreement to create a third company within a particular foreign market. This market entry is a form of:

Joint Venture or Strategic Alliance

Merger and Acquisition

Technology Licensing

Exporting through distribution

15. The concept of globalization is regularly debated. Data shows that trade and globalization is actually even more prevalent than most people realize.

True

False

Save

16. When looking at international market entry strategies, two primary factors are the degree of control and the cost of entry.

True

False

Reference no: EM132109388

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