Chpt 13

disadvantages associated with entering a foreign market before other international businesses.

First-mover disadvantages refer to

ride on an early entrant's investments in learning and customer education.

In international business, an advantage of being a late entrant in a foreign market is the ability to

turnkey project

In which of the following modes of entry into foreign markets does a firm agree to set up an operating plant for a foreign client and hand over the plant when it is fully operational?

acquires an established host-country enterprise

The risks associated with learning to do business in a new culture are less if the firm

a country with a free market system

Which of the following countries presents a favorable benefit-cost-risk trade-off scenario for foreign expansion?

rapid economic growth

Which of the following is a reason why a relatively poor country may be an attractive target for inward investment?

ability to create switching costs that tie customers into one's products or services

Which of the following is an example of a first-mover advantage?

hubris hypothesis

Which of the following postulates that top managers typically overestimate their ability to create value from an acquisition?

risk of losing control over technology

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