FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 13: Entering Foreign Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Stacey Yung wants to open a Pizza Hut restaurant in Beijing and has an agreement with the restaurant chain in which she can use the trademark and must also follow a strict set of guidelines detailing how the business should operate. The Pizza Hut Corporation will receive a percentage of Stacey's revenues from her restaurant. What type of entry mode does this represent?

A) franchising
B) wholly owned subsidiary
C) licensing
D) acquisition
E) turnkey operation

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

The text points out two things that can affect the value an international business creates in a foreign market: the sustainability of its product offering and the

A) population density in the foreign market.
B) political stability of the foreign market.
C) nature of indigenous competition.
D) per capita income in the foreign market.
E) type of political system in the foreign market.

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Service Corp. International provides customer service support for a variety of industries. Their brand name is well known, and as a service firm, it does not have to protect any proprietary technology. What mode of entry is most suitable for service companies like Service Corp. International where its main asset is its brand name?

Complex and expensive technology is needed to develop products at Feel-Better Pharmaceuticals based in Austin, Texas. For this reason, the company plans to have a plant built in Portugal that is ready for full operation and will be used for products sold in Europe. What type of entry mode is Feel-Better Pharmaceuticals using?

Turnkey projects, being short-term propositions, can be disadvantageous for a firm if a country subsequently proves to be a major market for the output of the process that has been exported. The firm can get around this problem by

Explain how a cross-licensing agreement helps reduce risk.

The present purchasing power of consumers in a new market is not a factor used by a business to assess the long-run economic benefits of doing business with that nation.

What is a wholly owned subsidiary? List its advantages.

________ would be an example of an industry in which cross-licensing agreements are becoming increasingly common.

An advantage of establishing a greenfield venture in a foreign country is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Acquisitions commonly take a long time to execute and, for this reason, are not favored by most firms.

Many gluten-free food options are found on the store shelves in the United States, but they are scarcely available in international markets. Given the increasing awareness of a healthy lifestyle, such products satisfy an unmet need. Therefore, a product such as gluten-free food in international markets

The liability associated with foreign expansion is greater for foreign firms that

A business that chooses to enter an international market on a large scale implies rapid entry.

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, what would be the preferable mode of entry?

If transportation costs are high for bulky products, exporting as a mode of entry into foreign markets may not be economical.

One reason why a relatively poor country may be an attractive target for inward investment is the potential for

Similar to a licensing agreement, a joint venture puts the control of a company's technology at risk.

What is a disadvantage of greenfield ventures?

Sun Energy is the first hydro-based energy plant in Australia, and it has captured a large portion of the market. It has created a strong brand name that everyone associates with energy efficiency and cost savings. In this market, Sun Energy is demonstrating