Collborative And Ownership Based Entry Mode

Question 1

Reasons for international business

Answer 1

• companies choose an international operating mode to achieve their strategic objectives
• when exporting and importing isn’t an option , firms have to go international

Question 2

What is the International Investment Agreements

Answer 2

A treaty between countries that address issues relevant to cross border investments, usually for the purpose of protectionism, promotion and liberalisation of investments

Question 3

Liberalisation

Answer 3

Is the lessening of government restrictions and regulation in an economy

Question 4

Factors that affect a firms operating mode

Answer 4

Operating environment

• physical social factors
• competitive factors

Operations

• objectives
• strategy

Question 5

Objectives of international business

Answer 5

Sales expansion
Resources
Risk minimisation

Question 6

General Motives for collaborative arrangements

Answer 6

Spread costs
Reduce risk
Avoid competition
Learn skills

Question 7

International business reasons for collaborative agreements

Answer 7

Gain location specific assets
Overcome legal restrictions
Diversify geographic location
Minimised exposure in one place

Question 8

Factors influencing type of collaborative agreements

Answer 8

How much control you need
Prior expansion
Compensation

Question 9

Problems with collaborative arrangements

Answer 9

Cultural differences

Different goals of the venture

Question 10

Collaborative partners should be assessed on

Answer 10

Resources they supply
Motivations
Compatibility