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Which of the following modes of entry into foreign markets have the advantage of being

Which of the following modes of entry into foreign markets have the advantage of being

Which of the following modes of entry into foreign markets have the advantage of being characterized by low development costs and risks?  

A. Exporting

B. Licensing

C. A greenfield investment

D. A wholly owned subsidiary

E. A joint venture

112.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?  

A. Wholly owned subsidiary

B. Joint venture

C. Exporting

D. Greenfield investments

E. Licensing

113.Jupiter Systems is a high-tech firm looking to set up operations in a foreign country to profit from its technological know-how which is its core competency. Which of the following modes of entry would be most favorable to the firm if it wants to keep a tight control over its technology?  

A. Wholly owned subsidiary

B. Joint venture

C. Franchising

D. Licensing

E. Turnkey project

114.Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills or technological know-how is not much of a concern, and where the firms' valuable asset is their brand name?  

A. Exporting

B. Franchising

C. Licensing

D. Turnkey projects

E. Cross-licensing

115.Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?  

A. Lack of control over quality

B. High costs and risks

C. Problems with local marketing agents

D. Inability to engage in global strategic coordination

E. Lack of control over technology

116.A firm that expects rapid imitation of its core technology by competitors should:  

A. revert to older technologies.

B. engage in exporting on a large scale.

C. license its technology to foreign firms.

D. set up a wholly owned subsidiary.

E. enter into a joint venture with a foreign firm.

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

A. It gives firms sound knowledge of the local markets, culture, and the political environment.

B. It helps protect competitive advantages based on technology.

C. It allows firms to use the profits generated in one market to improve its competitive position in another market.

D. It is the most politically accepted mode of entry into foreign markets.

E. It has the least costs and risks associated with developing a foreign market.

118.Which of the following is an advantage of acquisitions as a means of entering foreign markets?  

A. They are quick to execute and help firms to rapidly build their presence in the target foreign market.

B. It is much easier to change the culture of an existing organization than build a new organization.

C. It is easier to convert the operating routines of acquired units than establish routines in new subsidiaries.

D. They give firms access to valuable intangible assets while minimizing a pileup of tangible assets.

E. Acquired firms are often undervalued and hence assets can be purchased at minimal prices.

119.Which of the following is an advantage of acquisitions as a means of entering foreign markets?  

A. Acquiring firms often underpay for the assets of the acquired firm.

B. It enables firms to preempt their competitors.

C. After an acquisition, many acquired companies face increased recruitments.

D. Integrating the operations of the acquired and acquiring entities takes a very short time.

E. Most acquisitions are successful due to adequate pre-acquisition screening.

120.Which of the following is an advantage of an acquisition as a means of entry into foreign markets?  

A. It is much easier to change the culture of an existing organization than build a new organization.

B. It is easier to convert the operating routines of acquired units than establish routines in new subsidiaries.

C. It yields greater long-run returns than greenfield ventures.

D. It gives firms access to valuable intangible assets along with a set of tangible assets.

E. Acquired firms are often undervalued and hence assets can be purchased at minimal prices.

Abhinav 11-Jan-2020

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