Filters
Question type

Study Flashcards

Which of the following is a disadvantage of licensing and franchising? 


A)  Little control over marketing 
B)  High development costs 
C)  High risk in overseas expansion 
D)  Creation of a monopoly

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

What are the two schools of thought that have emerged concerning cultural distances?

Correct Answer

verifed

verified

Cultural distance is the difference betw...

View Answer

Agglomeration explains why certain cities and regions can attract businesses even in the absence of obvious geographic advantages.

A) True
B) False

Correct Answer

verifed

verified

Greenfield operations and acquisitions have complete equity and operational control.

A) True
B) False

Correct Answer

verifed

verified

The non-equity mode of indirect exports has better control over distribution than direct exports.

A) True
B) False

Correct Answer

verifed

verified

Co-marketing refers to _____.


A)  a project in which clients pay contractors to market and distribute the product/service 
B)  outsourcing agreements in marketing between firms 
C)  efforts among a number of firms to jointly market their products and services 
D)  selling the rights to intellectual property to another firm for a royalty fee

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

Correct Answer

verifed

verified

Describe how strategic goals drive the location of foreign entities.

Correct Answer

verifed

verified

Favorable locations in certain countries...

View Answer

Greenfield operations are a type of wholly owned subsidiary that does not require any FDI.

A) True
B) False

Correct Answer

verifed

verified

Which of the following is a non-equity mode of entry? 


A)  Acquisitions 
B)  Joint ventures 
C)  Turnkey projects 
D)  Green-fields

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

Correct Answer

verifed

verified

The preemption of scarce resources is a first-mover advantage.

A) True
B) False

Correct Answer

verifed

verified

An acquisition is an example of a wholly owned subsidiary.

A) True
B) False

Correct Answer

verifed

verified

Innovation-seeking firms often single out the most efficient locations featuring a combination of scale of economies and low cost factors.

A) True
B) False

Correct Answer

verifed

verified

A greenfield operation refers to _____.


A)  a new corporate entity created and jointly owned by two or more parent companies 
B)  a wholly owned subsidiary created by building a new factory and offices from scratch 
C)  a wholly owned subsidiary created by acquisition 
D)  an outsourcing agreement in R&D between firms

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

Late movers face greater technological and market uncertainties.

A) True
B) False

Correct Answer

verifed

verified

Companies with market-seeking strategic goals search for _____.


A)  abundance of strong market demand and customers willing to pay 
B)  economies of scale and abundance of low cost factors 
C)  abundance of innovative individuals, firms, and universities 
D)  particular foreign locations where the required resources are found

E) None of the above
F) B) and D)

Correct Answer

verifed

verified

Which of the following is true of indirect exports? 


A)  They typically provoke protectionism, potentially triggering antidumping actions. 
B)  They treat foreign demand as an extension of domestic demand. 
C)  They export through domestically based export intermediaries. 
D)  They do not enjoy the economies of scale similar to direct exports.

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

Correct Answer

verifed

verified

Which of the following is a late-mover advantage? 


A)  Pre-emption of scarce resources 
B)  Fewer technological and market uncertainties 
C)  Proprietary and technological leadership 
D)  Good relationships with key stakeholders such as governments

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

Correct Answer

verifed

verified

_____ are the most basic non-equity mode of entry,capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.


A)  Indirect exports 
B)  Direct exports 
C)  Turnkey projects 
D)  Acquisitions

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

Correct Answer

verifed

verified

Showing 61 - 78 of 78

Related Exams

Show Answer