ENTRY STRATEGY AND STRATEGIC ALLIANCES

Question 1

FIRMS EXPANDING INTERNATIONALLY MUST DECIDE:

Answer 1

WHICH MARKETS TO ENTER
WHEN TO ENTER THEM AND ON WHAT SCALE
WHICH ENTRY MODE TO USE

Question 2

ENTRY MODE INCLUDES:

Answer 2

*LICENSING OR FRANCHISNG TO A COMPANY IN THE HOST NATION.
*ESTABLISHING A JOINT VENTURE WITH A LOCAL COMPANY.
*ESTABLSHING A NEWLY WHOLLY OWNED SUBSIDARY.
*ACQUIRING AN ESTABLISHED ENTERPRISE.

Question 3

A common first step in the International Expansion process for many manufacturing firms.

Answer 3

EXPORTING

Question 4

The contractor agreed to handle every detail to project for a foreign client, including the training of operating personnel.

Answer 4

TURNKEY PROJECTS

Question 5

An arrangement whereby a licensor grants the rights to intangible property to another entity for specified time period ,and in return, the licensor receives a royalty fee from the licensee

Answer 5

LICENSING

Question 6

Specialized form of licensing in which the franchisor not only sells intangible property to the franchisee, but also insists that the franchisee agree to abide by strict rules as to how it does business.

Answer 6

FRANCHISING

Question 7

The establishment of firm that is jointly owned by two or more otherwise independent firms

Answer 7

Joint Ventures

Question 8

The firm owns 100 percent of the stock.

Answer 8

WHOLLY OWNED SUBSIDARIES

Question 9

Firms can establish a wholly owned subsidary in a country by:

Answer 9

using a greenfield strategy &
using an acquisition strategy

Question 10

Refer to cooperative agreements between potential or actual competitors.

Answer 10

Strategic Alliances