Question 1

Co-marketing has the ability to reach more customers but with limited control and coordination.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a benefit of large-scale entries?

Accepted Answer

A)   There are no losses even if these large-scale "bets" turn out to be wrong. 
B)   They have unlimited strategic flexibility in all markets. 
C)   They experience no liability of foreignness. 
D)   They demonstrate strategic commitment to certain markets.E) C) and D)
F) B) and C)

Question 3

Greenfield operations are similar to acquisitions in that they are both examples of _____.

Accepted Answer

A)   partially owned subsidiaries 
B)   wholly owned subsidiaries 
C)   non-equity mode of entry into foreign markets 
D)   equity mode of entry into foreign markets limited to a contractual agreementE) A) and D)
F) A) and C)

Question 4

Define a wholly owned subsidiary (WOS).What are the two primary means to set up a WOS?

Accepted Answer

A wholly owned subsidiary (WOS) is a sub...

Question 5

Industrial parks refer to the clustering of economic activities in certain locations.

Accepted Answer

A) True 
 B)False

Question 6

Market-seeking firms go to countries that have a strong demand for their products and services.

Accepted Answer

A) True 
 B)False

Question 7

A disadvantage of licensing is high development costs.

Accepted Answer

A) True 
 B)False

Question 8

_____ refers to the amount of resources committed to entering a foreign market.

Accepted Answer

A)   Scale of entry 
B)   Mode of entry 
C)   Institutional distance 
D)   BenchmarkingE) A) and B)
F) A) and C)

Question 9

An advantage of joint ventures is _____.

Accepted Answer

A)   the protection of know-how 
B)   the access to partners' assets 
C)   the ease of global coordination 
D)   the complete equity and operational controlE) A) and B)
F) B) and C)

Question 10

An advantage of joint ventures is the shared costs,risks,and profits.

Accepted Answer

A) True 
 B)False

Question 11

Non-equity modes do not require the establishment of independent organizations overseas.

Accepted Answer

A) True 
 B)False

Question 12

The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.

Accepted Answer

A) True 
 B)False

Question 13

The scale of entry refers to the amount of resources committed to entering a foreign market.

Accepted Answer

A) True 
 B)False

Question 14

A(n)  _____ is a non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.

Accepted Answer

A)   BOT agreement 
B)   R&D contract 
C)   JV 
D)   WOSE) All of the above
F) A) and B)

Question 15

Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries.This is a counter example of _____.

Accepted Answer

A)   the stage model 
B)   large-scale entry 
C)   the equity mode of entry 
D)   the country-of-origin effectE) A) and B)
F) None of the above

Question 16

The resource-based view argues that foreign firms need to deploy overwhelming resources and capabilities to offset their liability of foreignness.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is an equity mode of entry?

Accepted Answer

A)   Indirect exports 
B)   Wholly owned subsidiaries 
C)   R&D contracts 
D)   Licensing/franchisingE) B) and C)
F) A) and D)

Question 18

Location-specific advantages never change and only tend to grow.

Accepted Answer

A) True 
 B)False

Question 19

According to the stage model,firms will enter culturally distant countries for their first internationalization.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is an advantage of R&D contracts?

Accepted Answer

A)   Easy to negotiate and enforce contracts 
B)   Negligible threat from competitors 
C)   Continuous improvement of core innovation capabilities 
D)   Ability to tap into the best, cost-effective locationsE) A) and C)
F) B) and D)

Exam 10: Entering Foreign Markets

An advantage of joint ventures is the shared costs,risks,and profits.

Correct AnswerverifiedShow Answer

Location-specific advantages never change and only tend to grow.

Correct AnswerverifiedShow Answer

A(n) _____ is a non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.

Correct AnswerverifiedShow Answer

An advantage of joint ventures is _____.

Correct AnswerverifiedShow Answer

A disadvantage of licensing is high development costs.

Correct AnswerverifiedShow Answer

According to the stage model,firms will enter culturally distant countries for their first internationalization.

Correct AnswerverifiedShow Answer

Non-equity modes do not require the establishment of independent organizations overseas.

Correct AnswerverifiedShow Answer

Industrial parks refer to the clustering of economic activities in certain locations.

Correct AnswerverifiedShow Answer

Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries.This is a counter example of _____.

Correct AnswerverifiedShow Answer

_____ refers to the amount of resources committed to entering a foreign market.

Correct AnswerverifiedShow Answer

The scale of entry refers to the amount of resources committed to entering a foreign market.

Correct AnswerverifiedShow Answer

The resource-based view argues that foreign firms need to deploy overwhelming resources and capabilities to offset their liability of foreignness.

Correct AnswerverifiedShow Answer

Which of the following is a benefit of large-scale entries?

Correct AnswerverifiedShow Answer

Market-seeking firms go to countries that have a strong demand for their products and services.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of R&D contracts?

Correct AnswerverifiedShow Answer

The resource-based view suggests that firms need to take actions deemed legitimate and appropriate by the various formal and informal institutions governing market entries.

Correct AnswerverifiedShow Answer

Co-marketing has the ability to reach more customers but with limited control and coordination.

Correct AnswerverifiedShow Answer

Which of the following is an equity mode of entry?

Correct AnswerverifiedShow Answer

Greenfield operations are similar to acquisitions in that they are both examples of _____.

Correct AnswerverifiedShow Answer

Define a wholly owned subsidiary (WOS).What are the two primary means to set up a WOS?

Correct AnswerverifiedA wholly owned subsidiary (WOS) is a sub...View AnswerShow Answer

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A wholly owned subsidiary (WOS) is a sub...
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