International Marketing Details

Question 1

Factors to be considered when choosing international market entry strategies

Answer 1

-Level of control the business wants to have over marketing activities abroad
-Level of risk the business is willing to take
-How much revenue the business has

Question 2

Examples of international market entry strategies

Answer 2

-Exporting
-Franchising
-Licensing
-Direct investment(foreign direct investment)
-Joint ventures
-Mergers and acquisitions
-Takeovers

Question 3

Difference between franchising and licensing

Answer 3

-In licensing, there is a one-time transfer of property or rights, whereas franchising involves an ongoing relationship with the franchisor
-Franchising is associated with services while licensing is associated with products

Question 4

Types of exporting

Answer 4

-Direct exporting
-Indirect exporting

Question 5

Lowest risk international market entry strategy

Answer 5

Exporting

Question 6

Highest risk international market entry strategy

Answer 6

Direct investment(foreign direct investment)

Question 7

Most expensive international market entry strategy

Answer 7

Direct investment(foreign direct investment)

Question 8

Types of international marketing strategies

Answer 8

-Standardisation
-Adaptation

Question 9

Opportunities from operating internationally for a business

Answer 9

-Greater sales revenue(due to larger pool of customers)
-Lower costs of production and economies of scale
-Helps with spreading risks
-Improved brand reputation and brand awareness

Question 10

Threats for entry into international markets

Answer 10

-Differing sociocultural aspects(e.g. language barriers)
-Unstable political climates
-Potential legal restrictions
-Varying global invomes
-Potential periods of recession
-Imposition of tariffs