1. Companies grow internationally in order to:
Keep up with domestic and foreign competition
Minimize seasonal sales fluctations
Overcome low growth in domestic or existing markets
All of the above
2. Company A manufactures their products in the USA and sells them internationally through distributors located in foreign countries. This is a form of what market entry strategy?
Merger and Acquisition
Licensing
Joint Venture
Exporting
3. Which market entry strategy provides the most amount of control, along with the most amount of cost?
Exporting a franchise
Exporting equipment
Opening a wholly-owned subsidiary
Entering into a licensing agreement
4. When analyzing potential export markets, what factor could directly affect your product price?
Import tariffs and duties
Interest rates for capital investments
Cost of labor in the foreign market
Stock price values of distribution partners
5. BestBuy entered the Chinese market first through a sourcing office. What market entry strategy did BestBuy choose when they entered the Chinese market in order to sell into China?
Merger & Acquisition
Direct to consumer exporting
Indirect exporting
Franchising
6. The World Bank's Economy Rankings for ease of doing business incorporates the following rankings, except:
Dealing with construction permits
Cost of labor for construction
Access electricity
Enforcement of contracts
7. When analyzing market entry into China, Haagen Daz found that the only reason for charging high prices was because the Chinese viewed ice cream as a luxury.
True
False
8. Foreign Direct Investment is a market entry strategy that can include which tactic?
Outsourcing manufacturing
Licensing of technology
Merger and acquisition
Sales through distribution
9. A company is seeking to expand their sales into foreign markets. Their product is a large, yet relatively low-tech piece of equipment. Shipping the product for export is generally not cost effective. As such, they are seeking to find international market in which they could build a factory or acquire a company with similar assets. A primary resource that will compare the top 25 countries for such an investment would be:
Country Commercial Guides
Delloite International Tax Guides
The CIA World Factbook
FDI Confidence Index
10. The most common tactic for market entry, and the one that balances control vs. cost the most evenly, when exporting is through:
Wholly owned subsidiaries
Distributors
Export Management Companies
Sales Representatives
11. These type of companies act as an export department for one or more manufacturers.
Sales representative companies
Export management/trading companies
Freight forwarders
Marketing consultancies
12. When working with international partners, its not necessarily to meet with them face-to-face thanks to modern technology.
True
False
13. Which is an attribute that international sales team may have that is least helpful to success?
High drive for sales at any cost
Committed to travel and work independently
Flexible in their approach to sales
Technology proficiency
14. Two companies form an agreement to create a third company within a particular foreign market. This market entry is a form of:
Joint Venture or Strategic Alliance
Merger and Acquisition
Technology Licensing
Exporting through distribution
15. The concept of globalization is regularly debated. Data shows that trade and globalization is actually even more prevalent than most people realize.
True
False
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16. When looking at international market entry strategies, two primary factors are the degree of control and the cost of entry.
True
False