Ch.14 IBM 300 – Flashcards
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When a firm invests capital in a foreign market in order to gain ownership of a facility it is known by which of the following terms?
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FDI
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Licensing and franchising are both ________ relationships.
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contractual
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Which of the following foreign market entry strategies offers the focal firm the highest degree of control over foreign operations?
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wholly owned subsidiary (FDI)
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Which of the following foreign market entry strategies requires the most substantial resource committment on the part of the focal firm?
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majority-owned equity joint venture
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A focal firm that maintains a relatively low degree of control over foreign operations is most likely using which of the following foreign market entry strategies?
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countertrade
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A focal firm that requires a low-risk foreign market entry strategy would most likely choose which of the following approaches?
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global sourcing
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Which of the following is an example of push factors?
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falling profit margins
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Favorable foreign market conditions that encourage firms to internationalize are known by which of the following terms?
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pull factors
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A risk-taking manager at a Canadian firm would most likely pursue initial internationalization in which of the following foreign markets?
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Russia
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Which of the following is a benefit to firms of the lengthy internationalization process?
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Opportunities arise to develop ideas and adapt business methods for the domestic market.
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Which of the following most likely occurs in the experimental stage of internationalization?
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Managers target low-risk, culturally close markets through exporting or licensing.
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A firm allocates resources based on available international business opportunities during which of the following internationalization stages?
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Committed Involvement
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Focal firms that internationalize through exporting will most likely perform which of the following activities in the home market?
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manufacturing
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Governments use data on exporting and importing activities to calculate which of the following?
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trade deficit statistics
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The increase in China's export of IT products has most harmed which of the following?
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United States
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The Internet facilitates international trade in the service sector by ________.
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providing the means to deliver the exported service to foreign markets
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All of the following are advantages that firms often experience through exporting except ________.
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amplified country and corporate risk
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Which of the following is most likely a disadvantage to firms who use exporting as an entry strategy?
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lack of detailed knowledge about foreign customers
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Which of the following can negatively impact exporters more than firms that are involved in collaborative ventures?
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exchange rate instability
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After managers have chosen an appropriate market to which to export, they next need to make which of the following decisions?
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how much resources can be committed
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During the global market opportunity assessment phase, managers will most likely do which of the following?
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visit countries to determine customer needs and government regulations
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Which of the following questions is most likely to be addressed as firms organize for exporting?
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How much should the firm depend on intermediaries to carry out exporting?
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Which of the following is a characteristic of direct exporting?
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exporter develops a relationship with foreign buyers
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Which of the following would most likely be used in a high-volume market?
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company-owned subsidiary
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Which of the following terms refers to purchasing foreign merchandise and bringing it into the home market?
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global sourcing
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Among the following firms, which one imports the most from China?
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Walmart
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Which of the following documents is the contract between the shipping company and the exporter?
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bill of lading
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All of the following are reasons that national governments might require exporters to obtain a license to export except ________.
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protection against theft
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Incoterms were developed by the International Chamber of Commerce in order to ________.
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define how the buyer and seller share freight and insurance costs
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Which of the following methods of payment is the least popular among foreign buyers?
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cash in advance
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Why is a letter of credit most likely a popular method of payment in export transactions?
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the interests of the seller and buyer are protected simultaneously
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The World Bank Group is an example of which of the following?
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multilateral development bank
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In order to find appropriate foreign intermediaries, exporters would most likely consult all of the following except ________.
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newspapers and magazines
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Relational assets are defined as which of the following?
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long-term, advantageous business relationships with foreign facilitators
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Which of the following forms of countertrade involves payments in a combination of cash and goods?
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compensation deals
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Which of the following forms of countertrade involves payments in a combination of cash and goods?
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compensation deals
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Which of the following forms of countertrade involves payments in a combination of cash and goods?
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compensation deals
