CE8 H7

Question 1

What are the four different market entry strategy levels?

Answer 1

• Direct investment strategy
• Co-operative
• Contractual Exporting
• Exporting

Question 2

What are two examples of contractual exporting strategy?

Answer 2

Management contracts and Licensing

Question 3

What are two examples of a direct investment strategy?

Answer 3

Company acquisition and Wholly owned subsidiary

Question 4

What entry method causes the highest risk but gives you the most control?

Answer 4

Direct investment strategy

Question 5

What entry method causes the lowest risks but gives you the least control?

Answer 5

Direct exporting

Question 6

What is a good explanation for an export management company (EMC)?

Answer 6

A specialized company who acts as the export department for a range of companies

Question 7

What is a good example of Piggybacking?

Answer 7

An established international distribution network for one manufacturer used to carry products for another

Question 8

What does it take to carry out direct exporting?

Answer 8

Commitment of the firm’s management and an approach emphasizing the skills base

Question 9

What is a typical reason to start a strategic alliance?

Answer 9

If you have insufficient resources but you desire a quick pace of innovation