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Chapter 15 Quiz

Terms in this set (10)

True or False: A firm can maintain high control on product quality by entering a foreign country through franchising.
False
True or False: A firm can rapidly build its presence in the target foreign market through acquisitions.
True (Acquisitions are quick to execute. By acquiring an established enterprise, a firm build its presence in the target foreign market quickly.)
A franchising strategy is typically associated with:
quickly building a global presence
________ costs are typically associated with early entrants into a market and avoided by later entrants.
Pioneering
Rinaldo's Ravioli Ranch based in San Francisco plans to buy Maria's Marinara, which is based in Italy. Maria's Marinara has been in business for 12 years and demonstrates amazing profits. What type of entry mode is Rinaldo's using?
acquisition
Connor's company produces bicycles and wants to establish a wholly owned subsidiary in Austria. It can do this by acquiring an established firm in Austria or by:
setting up a Greenfield venture
Forming a strategic alliance is a way to:
bring together complementary skills.
Access to local partner's knowledge and shared development costs and risks are advantages of which foreign market entry mode?
Joint Venture
Which of the following is a disadvantage of establishing a wholly owned subsidiary?
Establishing a wholly owned subsidiary is generally the most costly method
Which of the following is a disadvantage that a firm faces when forming a strategic alliance?
A firm can give away more than it receives when forming an alliance.
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