International Marketing Chapter 9

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13 Questions - Developed by: Carlos - Developed on: - 13.455 taken

  • 1
    Licensing as a market entry mode has several disadvantages and opportunity costs, which do not include:
    Agreement may have short life.
    Adaptations by licensee to fit local tastes.
    Similar product or technology development by licensee.
    Limited market control.
    Leveraging and exploiting by licensee.
  • 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.
    Global strategic alliances
    One-hundred-percent ownership
    Joint Ventures
  • 3
    In order to prevent a licensor-competitor from gaining unilateral benefit, licensing agreements should provide for:
    Strategic decision-making
    Contract manufacturing
    Adaptation for local tastes
    Cross licensing
  • 4
    Pollo Campero, a chicken restaurant chain based in Central America, is using the following method for expanding operations in the United States.
    Joint ventures
  • 5
    In the mid-1980's, Apple Computer lost tens of billions of dollars by not using.
    Global strategic alliances.
    100% ownership
    Joint venture
  • 6
    The specialty retailing industry, as well as the fast-food industry, favors ________ for global growth.
    Joint ventures
    Strategic alliances
  • 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?
    100% ownership
    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:
  • 9
    The disadvantages of joint venturing can include all of the following except:
    Joint ventures allow partners to achieve synergy.
    Joint ventures can have the potential for conflict between partners.
    A dynamic joint venture partner can evolve into a strong competitor.
    A company incurs very significant costs by joint venturing.
    Joint venture partners must share rewards as well as risks.
  • 10
    The strategy to use joint ventures has several advantages which do not include:
    Reward sharing.
    Only way to enter a country or region.
    Achieve synergy
    Reduced financial risk.
    Risk sharing
  • 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?
    Joint Venture
  • 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:
    Failure of one partner to live up to the terms of the contract.
    The cancellation of NAFTA.
    The U.S. government's insistence on quick negotiations.
    The language barrier.
    Cultural differences.

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