5 Written Questions
5 Matching Questions
- Specifically what are first mover advantages?
- Post acquisitions what are problems all mergers and acquisitions face?
- What are the various types of exports?
- What are the advantages of joint venture?
- What are the two types of equity (fdi) modes of entry?
- a joint ventures and partially owned subsidiaries q
- b 1. sharing costs, risks, and profits
2. access to partners knowledge and assets
- c 1. poor organizational fit
2. failure to address multiple stake holders grps concerns
- d direct exports, indirect exports, and other
- e 1. preempt competitor
2. capture demand by est. strong brand name
3. build sale volumes
4. ride down the experience curve
5 Multiple Choice Questions
- Pioneering Costs
- a project in which a firm agrees to set up an operating plant for a foreign client and hand over the key when the plant is fully operational
- avoidance of clash with dominant firms at home
- concentration on resources fo production and no need to directly handle export process
- 1. mrgs overestimate ability to create value
2. inadequate pre-acquisition screening
3. poor strategic fit
5 True/False Questions
What are the advantages of licensing and franchising? → low envelopment costs and low risks in overseas expansion; crossing gov. barriers of entry in est. jv or wow
What is the second disadvantage of strategic alliances/ → accessing complementary assets, and learning opportunities
When choosing which foreign markets to enter what is third characteristic firms look at? → they asses the long run profit potential of each market; benefits, cost, and risk trade offs, size of the market and wealth, and future wealth (all these things depend on the economic growth) of a country; and finally but not least the value of a business (are we offering a product that people want)
True or False: Licensing is primarily used when a firm has some form of intangible goods to sell → Ture
Ture or False: Licensing is primarily pursued by manufacturing firms while franchise is employed primarily by service firms → Ture