Chapter 10: 3rd Attempt Quiz Questions

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Which of the following is an advantage of direct exports? a. Avoid export processes b. No trade barriers c. Low transportation costs for bulky products d. Better control over distribution

Better control over distribution

Which of the following is an advantage shared by both greenfield operations and acquisitions? a. Fast entry speed b. Protection of know-how c. Low development costs d. Add new capacity to industry

Protection of know-how

Which of the following is an equity mode of entry? a. Indirect exports b. R&D contracts c. Licensing/franchising d. Wholly owned subsidiaries

Wholly owned subsidiaries

With regard to foreign market entry, the resource-based view argues that foreign firms need to

deploy overwhelming resources and capabilities to offset their liability of foreignness.

Co-marketing refers to _____.

efforts among a number of firms to jointly market their products and services

An advantage of joint ventures is _____.

the access to partners' assets

A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India or U.S.A or any other country. This is an example of _____.

the country-of-origin effect

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

the stage model

Which of the following is a late-mover advantage? a. Fewer technological and market uncertainties b. Pre-emption of scarce resources c. Proprietary and technological leadership d. Good relationships with key stakeholders such as governments

Fewer technological and market uncertainties

Which of the following is true of licensing/franchising? a. The licensor/franchisor has the ability to coordinate globally. b. The licensor/franchisor has to bear the full costs and risks associated with foreign expansion. c. The licensor/franchisor does not have tight control over technology and marketing. d. The licensing/franchising strategy creates very limited competitors.

The licensor/franchisor does not have tight control over technology and marketing.

Which of the following is a benefit of large-scale entries? a. There are no losses even if these large-scale "bets" turn out to be wrong. b. They demonstrate strategic commitment to certain markets. c. They have unlimited strategic flexibility in all markets. d. They experience no liability of foreignness.

They demonstrate strategic commitment to certain markets.


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