Entry Strategy And Strategic Alliances

This question bank verified by Studydeets

All Questions

Question 1

Free

True/False

The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.

Choose correct answer/s

True

False

Check answer

Question 2

Free

True/False

The attractiveness of a country as a potential market for an international business depends on balancing the benefits,costs,and risks associated with doing business in that country.

Choose correct answer/s

True

False

Check answer

Question 3

Free

True/False

The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation.

Choose correct answer/s

True

False

Check answer

Question 4

Free

True/False

The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition.

Choose correct answer/s

True

False

Check answer

Question 5

Free

True/False

First-mover advantages are the advantages associated with entering a market early.

Choose correct answer/s

True

False

Check answer

Question 6

True/False

Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs.

Choose correct answer/s

True

False

To unlock the question

Question 7

True/False

Educating customers is a part of pioneering costs.

Choose correct answer/s

True

False

To unlock the question

Question 8

True/False

A strategic commitment can be reversed by the top management according to their convenience.

Choose correct answer/s

True

False

To unlock the question

Question 9

True/False

Large strategic commitments increase strategic flexibility.

Choose correct answer/s

True

False

To unlock the question

Question 10

True/False

A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption,scale economies,and switching costs.

Choose correct answer/s

True

False

To unlock the question

Question 11

True/False

Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market.

Choose correct answer/s

True

False

To unlock the question

Question 12

True/False

Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

Choose correct answer/s

True

False

To unlock the question

Question 13

True/False

Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad.

Choose correct answer/s

True

False

To unlock the question

Question 14

True/False

In a turnkey project,the contractor agrees to handle every detail of the project for a foreign client.

Choose correct answer/s

True

False

To unlock the question

Question 15

True/False

An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country.

Choose correct answer/s

True

False

To unlock the question

Question 16

True/False

Tangible property includes patents,designs,copyrights,and trademarks.

Choose correct answer/s

True

False

To unlock the question

Question 17

True/False

Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location.

Choose correct answer/s

True

False

To unlock the question

Question 18

True/False

By its very nature,licensing increases a firm's ability to utilize a coordinated strategy.

Choose correct answer/s

True

False

To unlock the question

Question 19

True/False

McDonald's is an example of a firm that uses a franchising strategy.

Choose correct answer/s

True

False

To unlock the question

Question 20

True/False

Franchising enables a firm to quickly build a global presence.

Choose correct answer/s

True

False

To unlock the question