Question 1

Axiom International wants to expand its operations to a country that is politically,culturally,and economically different from its home country.The firm needs to select a mode of entry which would give it access to local knowledge,allow sharing of development costs and risks,and also be politically acceptable.Which of the following modes of entry into foreign markets is most suitable for Axiom International?

Accepted Answer

A)   Wholly owned subsidiary
B)   Joint venture
C)   Exporting
D)   Greenfield investments
E)   LicensingF) A) and E)
G) A) and B)

Question 2

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

Accepted Answer

A)   The ability to build sales volume in the foreign country
B)   The avoidance of pioneering costs that a later entrant has to bear
C)   The increased probability of surviving in a foreign market
D)   The opportunity to observe and learn from the mistakes of late entrants in the foreign market
E)   The ability to allow later entrants to the foreign market ride ahead on the experience curveF) C) and E)
G) B) and C)

Question 3

If a firm is considering entering a country where incumbents exist,and if the competitive advantage of the firm is based on the transfer of organizationally embedded competencies,skills,routines,and culture,then a _____ is the preferable mode of entry.

Accepted Answer

A)   greenfield venture
B)   joint venture
C)   licensing agreement
D)   franchising deal
E)   turnkey projectF) A) and B)
G) B) and E)

Question 4

Which of the following is true of international firms considering foreign expansion?

Accepted Answer

A)   The timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.
B)   The long-run economic benefits of doing business in a country are solely a function of the country's population size.
C)   If the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
D)   The costs and risks associated with foreign expansion are higher in economically advanced nations.
E)   Politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.F) All of the above
G) D) and E)

Question 5

When a firm's competitive advantage is based on technological competence,a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.

Accepted Answer

A) True 
 B)False

Question 6

_____,a mode of entry into foreign markets,enable firms to hold each other hostage,which reduces the probability that they will behave opportunistically toward each other.

Accepted Answer

A)   Cross-licensing agreements
B)   Turnkey projects
C)   Joint ventures
D)   Greenfield ventures
E)   Wholly owned subsidiariesF) A) and E)
G) A) and D)

Question 7

Under a cross-licensing agreement,a firm can either request a royalty payment or license some valuable intangible property to a foreign partner.

Accepted Answer

A) True 
 B)False

Question 8

Franchising,a mode of entry into foreign markets,is employed primarily by _____ firms.

Accepted Answer

A)   service
B)   manufacturing
C)   online
D)   high-technology
E)   primaryF) B) and E)
G) B) and D)

Question 9

In terms of licensing,which of the following is an intangible property?

Accepted Answer

A)   Infrastructure
B)   Machinery
C)   Leased equipment
D)   Advanced computing systems
E)   PatentF) A) and C)
G) B) and D)

Question 10

Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?

Accepted Answer

A)   The foreign firm benefits from a local partner's knowledge of the host country.
B)   The foreign firm can protect its technology from being appropriated by its local partner.
C)   There is less cause for friction and conflict between the foreign and local partners.
D)   It gives a firm tight control over subsidiaries that which enable it to realize experience curve or location economies.
E)   The foreign firm does not have to bear any development costs and risks associated with opening a foreign market.F) A) and E)
G) C) and E)

Question 11

Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?

Accepted Answer

A)   Turnkey projects
B)   Joint ventures
C)   Licensing
D)   Exporting
E)   FranchisingF) A) and B)
G) A) and E)

Question 12

If an international firm's core competence is based on proprietary technology,entering a joint venture might risk losing control of that technology to the joint-venture partner.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true of market entry by an international firm considering foreign expansion?

Accepted Answer

A)   Politically unstable nations, by virtue of their higher potential for growth, are the best foreign markets.
B)   The value an international business can create in a foreign market does not depend on the nature of indigenous competition.
C)   The avoidance of pioneering costs that a later entrant has to bear is a first-mover advantage.
D)   Strategic commitments have minor influence on business decisions.
E)   Entering a large developing nation before most other international businesses on a large scale is associated with high levels of risk.F) A) and B)
G) B) and C)

Question 14

Describe the disadvantages of licensing as a mode of entry into the foreign market.

Accepted Answer

Licensing,a mode of entry into a foreign...

Question 15

Exporting,as a mode of entry into foreign markets,does not help a firm achieve experience curve and location economies.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a way in which the risk of failure of an acquisition can be reduced?

Accepted Answer

A)   By undervaluing the assets of an acquired firm
B)   By ensuring that firms are acquired in the home country
C)   By replacing high-level managers of an acquired firm
D)   By a detailed auditing of operations, financial position, and management culture
E)   By investing only in a firm that is managing to break evenF) A) and E)
G) C) and D)

Question 17

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

Accepted Answer

A)   The ability to capture demand by establishing a strong brand name
B)   The avoidance of pioneering costs that a later entrant has to bear
C)   The increased probability of surviving in a foreign market
D)   The opportunity to observe and learn from the mistakes of later entrants
E)   The ability to let later entrants ride ahead on the experience curveF) B) and E)
G) All of the above

Question 18

A risk-averse international firm that enters a foreign market on a small scale will increase its potential losses.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a disadvantage of joint ventures as a mode of entry into foreign markets?

Accepted Answer

A)   Joint ventures with local partners face a high risk of being subjected to adverse government interference.
B)   Firms engaged in joint ventures have short-term commitments in the foreign market.
C)   Joint ventures do not give a firm tight control over subsidiaries that it might need to realize experience curve or location economies.
D)   In many countries, political considerations make joint ventures impractical as an entry mode.
E)   Quality control problems arise due to lack of interest of local partners.F) C) and E)
G) A) and C)

Question 20

According to David Ravenscraft and Mike Scherer's study,many acquisitions destroy rather than create value.

Accepted Answer

A) True 
 B)False

Exam 13: Entering Foreign Markets

If an international firm's core competence is based on proprietary technology,entering a joint venture might risk losing control of that technology to the joint-venture partner.

Correct Answer
verified

Correct Answer
verified

Which of the following is true of market entry by an international firm considering foreign expansion?

Correct Answer
verified

Under a cross-licensing agreement,a firm can either request a royalty payment or license some valuable intangible property to a foreign partner.

Correct Answer
verified

Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?

Correct Answer
verified

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

Correct Answer
verified

_____,a mode of entry into foreign markets,enable firms to hold each other hostage,which reduces the probability that they will behave opportunistically toward each other.

Correct Answer
verified

Exporting,as a mode of entry into foreign markets,does not help a firm achieve experience curve and location economies.

Correct Answer
verified

According to David Ravenscraft and Mike Scherer's study,many acquisitions destroy rather than create value.

Correct Answer
verified

Franchising,a mode of entry into foreign markets,is employed primarily by _____ firms.

Correct Answer
verified

Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?

Correct Answer
verified

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

Correct Answer
verified

Which of the following is a way in which the risk of failure of an acquisition can be reduced?

Correct Answer
verified

Which of the following is a disadvantage of joint ventures as a mode of entry into foreign markets?

Correct Answer
verified

In terms of licensing,which of the following is an intangible property?

Correct Answer
verified

Describe the disadvantages of licensing as a mode of entry into the foreign market.

Correct Answer
verified
Licensing,a mode of entry into a foreign...
View Answer

When a firm's competitive advantage is based on technological competence,a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.

Correct Answer
verified

A risk-averse international firm that enters a foreign market on a small scale will increase its potential losses.

Correct Answer
verified

If a firm is considering entering a country where incumbents exist,and if the competitive advantage of the firm is based on the transfer of organizationally embedded competencies,skills,routines,and culture,then a _____ is the preferable mode of entry.

Correct Answer
verified

Which of the following is true of international firms considering foreign expansion?

Correct Answer
verified

Exam 13: Entering Foreign Markets

If an international firm's core competence is based on proprietary technology,entering a joint venture might risk losing control of that technology to the joint-venture partner.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is true of market entry by an international firm considering foreign expansion?

Correct AnswerverifiedShow Answer

Under a cross-licensing agreement,a firm can either request a royalty payment or license some valuable intangible property to a foreign partner.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

_____,a mode of entry into foreign markets,enable firms to hold each other hostage,which reduces the probability that they will behave opportunistically toward each other.

Correct AnswerverifiedShow Answer

Exporting,as a mode of entry into foreign markets,does not help a firm achieve experience curve and location economies.

Correct AnswerverifiedShow Answer

According to David Ravenscraft and Mike Scherer's study,many acquisitions destroy rather than create value.

Correct AnswerverifiedShow Answer

Franchising,a mode of entry into foreign markets,is employed primarily by _____ firms.

Correct AnswerverifiedShow Answer

Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a way in which the risk of failure of an acquisition can be reduced?

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of joint ventures as a mode of entry into foreign markets?

Correct AnswerverifiedShow Answer

In terms of licensing,which of the following is an intangible property?

Correct AnswerverifiedShow Answer

Describe the disadvantages of licensing as a mode of entry into the foreign market.

Correct AnswerverifiedLicensing,a mode of entry into a foreign...View AnswerShow Answer

When a firm's competitive advantage is based on technological competence,a joint venture is the preferred mode of entry into a foreign market because it reduces the risk of losing control over that competence.

Correct AnswerverifiedShow Answer

A risk-averse international firm that enters a foreign market on a small scale will increase its potential losses.

Correct AnswerverifiedShow Answer

If a firm is considering entering a country where incumbents exist,and if the competitive advantage of the firm is based on the transfer of organizationally embedded competencies,skills,routines,and culture,then a _____ is the preferable mode of entry.

Correct AnswerverifiedShow Answer

Which of the following is true of international firms considering foreign expansion?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Licensing,a mode of entry into a foreign...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified