Question :
91.Which of the following an advantage of franchising as a : 1299441
91.Which of the following is an advantage of franchising as a mode of entry into foreign markets?
A. The franchiser is relieved of many of the costs and risks of opening a foreign market on its own.
B. The franchiser is allowed to take profits out of one country to support competitive attacks in another.
C. The franchiser can easily maintain uniform quality across many geographically dispersed franchisees.
D. Manufacturing concerns can be effectively coordinated across adjacent processes.
E. The franchiser can support its short-term interests in a country with an unstable economy.
92.Which of the following is a disadvantage of franchising as a mode of entry into foreign markets?
A. The franchiser has to bear development costs and risks associated with foreign expansion.
B. Franchising leads to undesirable results for service firms.
C. It is difficult to maintain quality control across foreign franchisees that are distant from the franchiser.
D. The franchiser has no long-term interests in the foreign country.
E. It forces a franchiser to take out profits from one country to support competitive attacks in another.
93.Which of the following is a disadvantage of franchising as a mode of entry into foreign markets?
A. The franchiser has to bear development costs and risks associated with foreign expansion.
B. While franchising offers an ideal entry mode for manufacturing firms, it often leads to undesirable results for service firms.
C. Poor quality standards of a foreign franchisee can cause a decline in the franchising firm’s worldwide reputation.
D. The franchiser has no incentive to sustain a long-term interest in the foreign country.
E. Franchising often forces a franchiser to take out profits from one country to support competitive attacks in another.
94.Which of the following can be used to overcome quality control problems associated with franchising as a mode of entry into foreign markets?
A. Licensing agreements
B. Subsidiaries
C. Turnkey projects
D. Export licenses
E. Cross-licensing agreements
95.A _____, a mode of entry into foreign markets, entails establishing a firm that is collectively owned by two or more otherwise independent firms.
A. licensing agreement
B. wholly owned subsidiary
C. franchising agreement
D. joint venture
E. greenfield investment
96.A joint venture in which both parties hold equal ownership stakes is known as a(n) _____.
A. offshore joint venture
B. 50/50 joint venture
C. 25/75 joint venture
D. marketing joint venture
E. fully integrated joint venture
97.Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?
A. The foreign firm benefits from a local partner’s knowledge of the host country.
B. The foreign firm can protect its technology from being appropriated by its local partner.
C. There is less cause for friction and conflict between the foreign and local partners.
D. It gives a firm tight control over subsidiaries that which enable it to realize experience curve or location economies.
E. The foreign firm does not have to bear any development costs and risks associated with opening a foreign market.
98.Which of the following is a disadvantage of joint ventures as a mode of entry into foreign markets?
A. Joint ventures with local partners face a high risk of being subjected to adverse government interference.
B. Firms engaged in joint ventures have short-term commitments in the foreign market.
C. Joint ventures do not give a firm tight control over subsidiaries that it might need to realize experience curve or location economies.
D. In many countries, political considerations make joint ventures impractical as an entry mode.
E. Quality control problems arise due to lack of interest of local partners.
99.Which of the following is a disadvantage of joint ventures as a mode of entry into foreign markets?
A. Joint ventures with local partners face a high risk of being subjected to government interference.
B. Joint ventures can lead to conflicts and battles for control between the investing firms.
C. Firms engaged in joint ventures have short-term commitments in the foreign market.
D. In many countries, political considerations make joint ventures impractical as an entry mode.
E. The foreign firm cannot rely on its local partner for unbiased information about the host country.
100.Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?
A. A foreign firm shares the costs and risks of development with its local partner.
B. A foreign firm can easily maintain control over how its technological know-how is used by a local partner.
C. There is less cause for friction and conflict between partners involved in a joint venture.
D. Joint ventures are ideal to maintain tight control over subsidiaries.
E. Joint ventures benefit firms lacking the capital to expand operations overseas.
