International Marketing Chapter 9

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13 Questions - Developed by: Carlos - Developed on: - 14.067 taken

  • 1
    Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include:
    Similar product or technology development by licensee.
    Leveraging and exploiting by licensee.
    Adaptations by licensee to fit local tastes.
    Agreement may have short life.
    Limited market control.
  • 2
    ________ represent(s) a market entry strategy whereby one company permits a foreign company to make use of it's patents, know-how, technology, company name, or other intangible assets in return for a royalty payment.
    Licensing
    Joint Ventures
    One-hundred-percent ownership
    Global strategic alliances
    Exporting
  • 3
    In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for:
    Franchising
    Strategic decision-making
    Cross licensing
    Adaptation for local tastes
    Contract manufacturing
  • 4
    Pollo Campero, a chicken restaurant chain based in Central America, is using the following method for expanding operations in the United States.
    Licensing
    Joint ventures
    Exporting
    Franchising
    Acquisition
  • 5
    In the mid-1980's, Apple Computer lost tens of billions of dollars by not using.
    Exporting
    Global strategic alliances.
    100% ownership
    Licensing.
    Joint venture
  • 6
    The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth.
    franchising
    Strategic alliances
    Investment
    Joint ventures
    Licensing
  • 7
    The agreements that allow McDonald's franchisees around the globe to use McDonald's trademarked name and menu items represent, in essence, which form of market entry?
    Exporting
    100% ownership
    Acquisition
    Franchising
    Joint ventures
  • 8
    Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea's LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of:
    Franchising
    Exporting
    FDI
    Licensing
    Acquisition
  • 9
    The disadvantages of joint venturing can include all of the following except:
    A company incurs very significant costs by joint venturing.
    Joint ventures allow partners to achieve synergy.
    Joint venture partners must share rewards as well as risks.
    Joint ventures can have the potential for conflict between partners.
    A dynamic joint venture partner can evolve into a strong competitor.
  • 10
    The strategy to use joint ventures has several advantages which do not include:
    Reward sharing.
    Risk sharing
    Achieve synergy
    Reduced financial risk.
    Only way to enter a country or region.
  • 11
    Which of the following does not fit into the sequence of experiences Anheuser-Busch had in Japan?
    Anheuser-Busch dissolved the joint venture with Kirin Brewery.
    Anheuser-Busch created a joint venture with Kirin Brewery, the market leader.
    Anheuser-Busch entered into a joint venture with Kirin Brewery.
    Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.
    Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the smallest brewery in Japan
  • 12
    As a general rule, the Chinese government allows foreign companies to participate in it's market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?
    Franchising
    Licensing
    Joint Venture
    Exporting
    Acquisition
  • 13
    The president of a Mexican company recently remarked, "Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards." A few months later, the Mexican company and it's U.S. joint venture partner parted company. Judging by the president's remark, one important reason for the "divorce" was:
    The language barrier.
    The U.S. government's insistence on quick negotiations.
    The cancellation of NAFTA.
    Failure of one partner to live up to the terms of the contract.
    Cultural differences.

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