In the context of foreign market entry strategies, the advantages of _____ are most apparent when capital is scarce, import restrictions forbid other means of entry, a country is sensitive to foreign ownership, or patents and trademarks must be protected against cancellation for nonuse.
- consortia
- exporting arrangements
- strategic alliances
- licensing
- joint ventures
GHB Corp. is a manufacturer of consumer goods. It intends to sell its products in Vietnam as it is looking to enter into Asian markets. It does not want to make any equity investment and is keen on minimizing any risk of loss in the foreign market. It is also willing to settle for a low rate of return. Which of the following types of foreign market-entry strategies is GHB most likely to follow?
- Direct foreign investment
- Joint Venture
- Indirect exporting
- Strategic alliance
- Licensing
Devonaile Inc. is a small-scale apparel manufacturer in Florida. Devonaile and other similar firms from Florida collaborate and form a separate company in India as none of the participants in this collaboration have active operations in the Indian market. The newly created firm primarily manufactures apparel suited to the tastes and preferences of the Indian customers. Identify the type of foreign market-entry approach depicted in this scenario.
- A franchising agreement
- A consortium
- A licensing agreement
- Direct exporting
- Indirect exporting