Question 1

Establishing a wholly owned subsidiary gives an international firm a 100 percent share in the profits generated in a foreign market.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a course of action suggested by Christopher Bartlett and Sumantra Ghoshal for companies based in developing nations?

Accepted Answer

A)  build up financial resources to match those of the largest global competitors
B)  enter foreign markets at a similar time and scale as multinational companies
C)  enter markets rapidly and exit at an equally rapid pace to avoid heavy losses
D)  benchmark one's operations and performance against foreign multinationals
E)  do not focus on market niches that multinational companies ignoreF) A) and E)
G) None of the above

Question 3

How can firms avoid incurring high transport costs when exporting bulk products?

Accepted Answer

A)  taking a minority equity interest
B)  entering into a turnkey project with a foreign firm
C)  manufacturing bulk products regionally
D)  setting up subsidiaries irrespective of market reach
E)  reducing the quantity of the product offeringF) C) and E)
G) C) and D)

Question 4

Which of the following is a risk of being the first to enter developing nations like India and China on a large scale?

Accepted Answer

A)  lower potential for long-term rewards
B)  absence of prior foreign entrants
C)  lack of control over quality
D)  fear of rapid imitation of technology
E)  high management turnoverF) A) and B)
G) A) and C)

Question 5

The attractiveness of a country as a potential market for an international business depends solely on the size of its consumer market.

Accepted Answer

A) True 
 B)False

Question 6

According to Christopher Bartlett and Sumantra Ghoshal,how can local companies differentiate themselves from foreign multinationals?

Accepted Answer

A)  licensing their core technologies
B)  entering into turnkey projects
C)  standardizing their product offerings
D)  focusing on market niches
E)  raising trade barriersF) A) and E)
G) A) and D)

Question 7

While personal fitness trackers (such as Fitbit) are widely available in the U.S.,they are scarcely available in international markets.Given the increasing awareness of a healthy lifestyle,such products satisfy an unmet need.A product such as Fitbit in international markets

Accepted Answer

A)  is likely to have greater value.
B)  will have to be priced relatively low.
C)  will see a decrease in sales volume.
D)  is not suited to that particular market.
E)  will fail to make a profit.F) A) and B)
G) A) and E)

Question 8

Which of the following is true of international firms considering foreign expansion?

Accepted Answer

A)  The timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.
B)  The long-run economic benefits of doing business in a country are solely a function of the country's population size.
C)  If the firm's core competence is based on proprietary technology,entering a joint venture might risk losing control of that technology to the joint-venture partner.
D)  The costs and risks associated with foreign expansion are higher in economically advanced nations.
E)  Politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.F) A) and C)
G) B) and D)

Question 9

Why should a high-tech firm avoid selecting licensing as a mode of entry?

Accepted Answer

A)  threat of creating efficient partners
B)  risk of losing control over technology
C)  fear of rapid imitation of core technology
D)  lack of a transitory technological advantage
E)  inability to deter development costsF) B) and D)
G) A) and B)

Question 10

Juggernaut,Inc.makes large-size commercial appliances such as freezers and refrigerators.These items are bulky and the firms incur high transportation costs to distribute its products.Juggernaut,Inc.wants to enter foreign markets via exports.How can Juggernaut,Inc.avoid incurring high transport costs when exporting its bulk products?

Accepted Answer

A)  taking a minority equity interest
B)  entering into a turnkey project with a foreign firm
C)  manufacturing bulk products regionally
D)  setting up subsidiaries irrespective of market reach
E)  reducing the quantity of the product offeringF) A) and E)
G) D) and E)

Question 11

What are the advantages and disadvantages of exporting as a mode of entry into foreign markets?

Accepted Answer

Exporting has two distinct advantages.Fi...

Question 12

An international firm that perceives its technological advantage to be transitory and susceptive to rapid imitation might want to license its technology to foreign firms.

Accepted Answer

A) True 
 B)False

Question 13

The most typical joint venture is a 50/50 venture,in which there are two parties,each of which holds a 50 percent ownership stake and contributes a team of managers to share operating control.

Accepted Answer

A) True 
 B)False

Question 14

The locally manufactured Nirma was a popular mainstream brand of detergent in India.However,with the entry of a foreign multinational such as Procter & Gamble into the Indian market,Nirma began to lose market share.According to Christopher Bartlett and Sumantra Ghoshal,how can Nirma differentiate itself from foreign multinationals?

Accepted Answer

A)  licensing their core technologies
B)  entering into turnkey projects
C)  standardizing their product offerings
D)  focusing on market niches
E)  raising trade barriersF) All of the above
G) A) and E)

Question 15

What triggers the conflict of interest over strategy and goals in joint ventures?

Accepted Answer

A)  local partner's knowledge of host country's competitive conditions
B)  giving control of core technology to the foreign partner
C)  shifts in relative bargaining power of venture partners
D)  trying to realize location and experience curve economies
E)  risk of being subject to adverse government interferenceF) A) and D)
G) A) and C)

Question 16

In terms of the entry modes into a foreign market,a joint venture does not give an international firm the tight control over subsidiaries that might be required to realize experience curve or location economies.

Accepted Answer

A) True 
 B)False

Question 17

An advantage of establishing a greenfield venture in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Accepted Answer

A) True 
 B)False

Question 18

Franchising as a mode of entry into foreign markets is employed primarily by

Accepted Answer

A)  service firms.
B)  manufacturing companies.
C)  online outfits.
D)  high-technology companies.
E)  primary industries.F) A) and E)
G) B) and C)

Question 19

Omega,Inc.is considering international expansion and wants to know if it is likely to command a high price for its fitness product.In which of the following situations can Omega,Inc.command higher prices for its fitness product in a foreign market?

Accepted Answer

A)  the product is widely available in the foreign market
B)  sales volumes is relatively low in the foreign market
C)  the product offers greater value to customers in the foreign market
D)  the product is more suitable to other foreign markets
E)  domestic competitors are selling alternatives at reduced pricesF) A) and B)
G) B) and E)

Question 20

The CFO of At Home Products is unhappy with the firm's choice of wholly owned subsidiaries as the mode of foreign entry.He has pointed out a number of disadvantages to this mode.Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?

Accepted Answer

A)  lack of control over quality
B)  high costs and risks
C)  problems with local marketing agents
D)  inability to engage in global strategic coordination
E)  lack of control over technologyF) C) and E)
G) A) and C)

Exam 13: Entering Foreign Markets

The attractiveness of a country as a potential market for an international business depends solely on the size of its consumer market.

Correct Answer
verified

The most typical joint venture is a 50/50 venture,in which there are two parties,each of which holds a 50 percent ownership stake and contributes a team of managers to share operating control.

Correct Answer
verified

While personal fitness trackers (such as Fitbit) are widely available in the U.S.,they are scarcely available in international markets.Given the increasing awareness of a healthy lifestyle,such products satisfy an unmet need.A product such as Fitbit in international markets

Correct Answer
verified

Correct Answer
verified

An international firm that perceives its technological advantage to be transitory and susceptive to rapid imitation might want to license its technology to foreign firms.

Correct Answer
verified

What triggers the conflict of interest over strategy and goals in joint ventures?

Correct Answer
verified

Which of the following is true of international firms considering foreign expansion?

Correct Answer
verified

Why should a high-tech firm avoid selecting licensing as a mode of entry?

Correct Answer
verified

According to Christopher Bartlett and Sumantra Ghoshal,how can local companies differentiate themselves from foreign multinationals?

Correct Answer
verified

Establishing a wholly owned subsidiary gives an international firm a 100 percent share in the profits generated in a foreign market.

Correct Answer
verified

What are the advantages and disadvantages of exporting as a mode of entry into foreign markets?

Correct Answer
verified
Exporting has two distinct advantages.Fi...
View Answer

Omega,Inc.is considering international expansion and wants to know if it is likely to command a high price for its fitness product.In which of the following situations can Omega,Inc.command higher prices for its fitness product in a foreign market?

Correct Answer
verified

Franchising as a mode of entry into foreign markets is employed primarily by

Correct Answer
verified

An advantage of establishing a greenfield venture in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Correct Answer
verified

Which of the following is a course of action suggested by Christopher Bartlett and Sumantra Ghoshal for companies based in developing nations?

Correct Answer
verified

How can firms avoid incurring high transport costs when exporting bulk products?

Correct Answer
verified

In terms of the entry modes into a foreign market,a joint venture does not give an international firm the tight control over subsidiaries that might be required to realize experience curve or location economies.

Correct Answer
verified

Correct Answer
verified

Which of the following is a risk of being the first to enter developing nations like India and China on a large scale?

Correct Answer
verified

The CFO of At Home Products is unhappy with the firm's choice of wholly owned subsidiaries as the mode of foreign entry.He has pointed out a number of disadvantages to this mode.Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?

Correct Answer
verified

Exam 13: Entering Foreign Markets

The attractiveness of a country as a potential market for an international business depends solely on the size of its consumer market.

Correct AnswerverifiedShow Answer

The most typical joint venture is a 50/50 venture,in which there are two parties,each of which holds a 50 percent ownership stake and contributes a team of managers to share operating control.

Correct AnswerverifiedShow Answer

While personal fitness trackers (such as Fitbit) are widely available in the U.S.,they are scarcely available in international markets.Given the increasing awareness of a healthy lifestyle,such products satisfy an unmet need.A product such as Fitbit in international markets

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An international firm that perceives its technological advantage to be transitory and susceptive to rapid imitation might want to license its technology to foreign firms.

Correct AnswerverifiedShow Answer

What triggers the conflict of interest over strategy and goals in joint ventures?

Correct AnswerverifiedShow Answer

Which of the following is true of international firms considering foreign expansion?

Correct AnswerverifiedShow Answer

Why should a high-tech firm avoid selecting licensing as a mode of entry?

Correct AnswerverifiedShow Answer

According to Christopher Bartlett and Sumantra Ghoshal,how can local companies differentiate themselves from foreign multinationals?

Correct AnswerverifiedShow Answer

Establishing a wholly owned subsidiary gives an international firm a 100 percent share in the profits generated in a foreign market.

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages of exporting as a mode of entry into foreign markets?

Correct AnswerverifiedExporting has two distinct advantages.Fi...View AnswerShow Answer

Omega,Inc.is considering international expansion and wants to know if it is likely to command a high price for its fitness product.In which of the following situations can Omega,Inc.command higher prices for its fitness product in a foreign market?

Correct AnswerverifiedShow Answer

Franchising as a mode of entry into foreign markets is employed primarily by

Correct AnswerverifiedShow Answer

An advantage of establishing a greenfield venture in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Correct AnswerverifiedShow Answer

Which of the following is a course of action suggested by Christopher Bartlett and Sumantra Ghoshal for companies based in developing nations?

Correct AnswerverifiedShow Answer

How can firms avoid incurring high transport costs when exporting bulk products?

Correct AnswerverifiedShow Answer

In terms of the entry modes into a foreign market,a joint venture does not give an international firm the tight control over subsidiaries that might be required to realize experience curve or location economies.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a risk of being the first to enter developing nations like India and China on a large scale?

Correct AnswerverifiedShow Answer

The CFO of At Home Products is unhappy with the firm's choice of wholly owned subsidiaries as the mode of foreign entry.He has pointed out a number of disadvantages to this mode.Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Exporting has two distinct advantages.Fi...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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