Question :
101.Which of the following a way in which a wholly : 1299442
101.Which of the following is a way in which a wholly owned subsidiary may be established in a foreign market?
A. Through a turnkey operation with a local partner
B. Through franchising
C. By acquiring an established firm in the host nation
D. By exporting
E. Through a licensing agreement
102.Establishing a _____ gives international firms a 100 percent share in the profits generated in a foreign market.
A. franchising agreement
B. licensing deal
C. joint venture
D. wholly owned subsidiary
E. turnkey project
103.Which of the following entry modes into a foreign market best serves a high-tech firm?
A. Turnkey projects
B. Franchising
C. Wholly owned subsidiaries
D. Joint ventures
E. Exporting
104.Which of the following is an advantage of wholly owned subsidiaries as a mode of entry into foreign markets?
A. A foreign firm is relieved of many of the costs and risks associated with opening a foreign market on its own.
B. The risk of losing control over a firm’s technological competence is reduced.
C. A foreign firm is insulated completely from the threat posed by high transport costs.
D. It is the most politically acceptable mode of entry into foreign markets.
E. It helps create competition which in turn increases the quality of production.
105.Which of the following is generally the most costly form of serving a foreign market from a capital investment standpoint?
A. Joint venture
B. Licensing
C. Franchising
D. Wholly owned subsidiary
E. Exporting
106.Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign markets?
A. Foreign firms find it difficult to maintain control over how their technological know-how is used.
B. Foreign firms cannot use profits earned in one country to support competitive attacks in another.
C. Foreign firms tend to have short-term commitments in the foreign market.
D. Foreign firms cannot realize substantial experience curve and location economies.
E. Foreign firms must bear the full capital costs and risks of setting up overseas operations.
107.Which of the following modes of entry into foreign markets has the distinct advantages of protection of technology, the ability to engage in global strategic coordination, and the ability to realize location and experience curve economies?
A. Franchising
B. Wholly owned subsidiaries
C. Joint ventures
D. Licensing
E. Exporting
108.Which of the following is true of international firms considering foreign expansion?
A. The timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.
B. The long-run economic benefits of doing business in a country are solely a function of the country’s population size.
C. If the firm’s core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology to the joint-venture partner.
D. The costs and risks associated with foreign expansion are higher in economically advanced nations.
E. Politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.
109.Which of the following modes of entry into foreign markets has the ability to realize location and experience curve economies?
A. Turnkey projects
B. Joint ventures
C. Licensing
D. Exporting
E. Franchising
110.Which of the following modes of entry into foreign markets can result in a lack of control over quality?
A. Exporting
B. Franchising
C. Turnkey projects
D. Wholly owned subsidiaries
E. Joint ventures
