FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 12: Entering Foreign Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 41

Multiple Choice

Review LaterAdd Note

Review Later

Research seems to confirm that the probability of survival of an international business increases if it:

A) is a late entrant to the market.
B) avoids the use of countertrade agreements.
C) enters a national market early.
D) rides down the experience curve ahead of rivals.

E) B) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 42

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is an advantage of acquisitions?

A) On average,the profits and market shares of acquired companies rose substantially following acquisition.
B) Acquisitions avoid the pitfall of the hubris hypothesis.
C) The vast majority of mergers and acquisitions achieve substantial revenue synergies.
D) It gives firms access to valuable intangible assets.

E) A) and D)
F) All of the above

Correct Answer

verified

Show Answer

Question 43

True/False

Review LaterAdd Note

The most typical joint venture is a 50/50 venture.

Which of the following are costs that an early entrant has to bear that a later entrant can avoid?

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

Suzie's Sleds Incorporated is considering establishing a subsidiary in Japan.Suzie's has no competition in that particular product segment in the region.In this case,which of the following is the only mode available to Suzie's in establishing a wholly owned subsidiary in the country?

One of the drawbacks to exporting arises when a firm delegates its marketing,sales,and service in each country where it does business to another company,leading to the risk of:

Which of the following is NOT a reason that acquisitions fail?

Preemptive advantages are the advantages frequently associated with entering a market early.

Under a(n) _____ agreement,a firm might license some valuable intangible property to a foreign partner,but in addition to a royalty payment,the firm might also request that the foreign partner license some of its valuable know-how to the firm.

In an international business where transferring products,competencies,skills,and know-how from the established operations of the firm to the new subsidiary are principal ways of creating value,a(n) _____ is a better choice since it is much easier to build an organization culture and operating routines from scratch than it is to change the same of an existing unit.

Indonesia is a populous nation,but is a relatively less attractive option for inward investment because of its:

Why do acquisitions sometimes fail?

Early entrants can find themselves at a disadvantage if a subsequent change in a foreign country's regulations invalidates prior assumptions about the best business model for operating in that country. This is a serious risk in many developing nations where the rules that govern business practices are still evolving.

According to Christopher Bartlett and Sumantra Ghoshal,what are the prospects for businesses based in developing nations?

The big advantage of establishing a(n) _____ in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

KFC introduced the Chinese to American-style fast food,but a later entrant,McDonald's,has capitalized on the market in China.This demonstrates how:

Why do firms pursuing global standardization or transnational strategies tend to prefer establishing wholly owned subsidiaries?

Local agents handling marketing,sales,and service of an exporter may have loyalties to several other companies and may not do as good a job as the firm would if it managed its marketing itself.The company can address this problem by:

Franchising is employed primarily by: