Which one of the following is not a reason why a company decides to enter foreign markets
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Question 1Internationalization stimuli refer to: a) internal motives for foreign investment. b) internal organizational factors arising from within the organization that influence a firm's decision to initiate, develop, and sustain international business activities. c) a multinational firm's motives for establishing an investment in a foreign location. d) internal and external factors that influence a firm's decision to initiate, develop, and sustain international business activities. Question 2First mover advantage suggests that: a) pioneering businesses are able to obtain higher profits and other benefits as the consequence of early market entry. b) first mover firms expand more rapidly in international markets than late movers in international markets. c) competing multinational firms enter an important market when a market is growing very fast. d) multinational firms with first mover advantages have greater strategic incentives for investing in technical innovations than late movers. Question 3The difficulties as a result of the different norms and rules that constrain human behaviour are called: a) Liability of expansion b) Liability of foreignness c) Liability of smallness d) Liability of newness Question 4High psychic distance can: a) encourage the firm's international expansion into a given country. b) encourage the firm's foreign investments in new international markets. c) discourage the firm's use of strategic alliances. d) discourage the firm's international expansion into a given country. Question 5The Uppsala Model can help to understand: a) a firm's initial choice of international location and its mode of entry into foreign markets. b) a firm's level of psychic distance and its ability to invest in distant foreign markets. c) the role of psychic distance and internationalization stimuli in the international expansion of firms. d) a firm's ability to overcome the liability of foreigness in its international expansion. Question 6A Born Global firm is a firm that: a) develops international new ventures from its birth by using outsourcing from foreign locations in multiple countries. b) overcomes psychic distance and the liability of foreigness by investing in foreign locations in multiple countries. c) ignores the challenges of psychic distance and the liability of foreigness when planning its expansion to foreign locations in multiple countries. d) from its birth seeks competitive advantage by using resources from different countries and by selling its products in multiple countries.
Question 7Which of the following is NOT a mode of entry into foreign markets? a) Export b) Internationalization c) International joint venture d) Franchising Question 8Franchising involves: a) the transfer of patented information and trademarks, information and know-how as well as information needed to sell a product or service. b) the use of franchising for licensing new technologies in global markets. c) the transfer of a business concept, with corresponding operational guidelines, to non-domestic parties for a fee. d) greenfield investment in a completely new facility, or acquisition of or merger with an already established local firm. Question 9Horizontal and Vertical are types of: a) Greenfield strategy b) Licensing and franchising c) Mergers and acquisitions d) Greenfield investments Question 10De-internationalization can be the result of two different processes: a) Strategic decision-making and operational decision-making b) Company failure and strategic decision-making c) A forced process and a semi-forced process d) A voluntary process and strategic decision-making Which one of the following account for why companies decide to enter foreign markets?Which of the following account for why companies decide to enter foreign markets? To gain access to new customers and/or achieve lower costs and thereby become more most competitive.
Why do companies decide to enter foreign market quizlet?Why do companies decide to enter a foreign market? To capture economies of scale in product development, manufacturing, or marketing.
What is one of the main reasons for a company to compete internationally?Perhaps the most obvious reason to compete in international markets is gaining access to new customers. Although the United States enjoys the largest economy in the world, it accounts for only about 5% of the world's population.
Why do companies decide to enter a foreign market to capture economies of scale in product development manufacturing or marketing?A company may opt toexpand outside its domestic markets to gain access to new customers; to achieve lower costs througheconomies of scale, experience, and increased purchasing power; and to further exploit its core competencies.
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