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Question 1

In making international market entry decision, the marketing 'environmentals' which need to be considered include:

a) politico-economic

b) competition

c) currency

d) all of the above

Question 2

The incrementalist approach to making international market entry is more suitable to ___________ businesses as it allows time to developed key relationships with customers and business partners.

a) service

b) inexperienced

c) seasoned

d) relationship-focused

Question 3

Transactional Cost Analysis (TCA) Theory is based on the premise that an organization will internationalize if it can perform at a _______ transaction cost that if it exported or entered into a contractual arrangement with a local partner.

a) lower

b) higher

c) maximum

d) optimum

Question 4

Eclectic or Contingency Theory of Internationalization is built on three factors, which are:

a) ownership specific, location and internalization

b) ownership specific, location and internationalization

c) contingency planning, location and internalization

d) ownership nature, location and internationalization

Question 5

The Bargaining Power (BP) approach to internationalization sees the choice of market entry mode as the outcome of negotiations between the _________ and the _________ of the host country.

a) organization; government

b) organization; key local suppliers

c) original manufacturer; agency

d) original manufacturer; government

Question 6

International Business Models are:

a) market entry strategies

b) modes of market entry

c) the basic business formula

d) ways of doing business internationally

Question 7

Which of the following statements best describes what exporting is?

a) Successful exporting inevitably involves ownership of a subsidiary in the target market.

b) Exporting is where a company buys its physical products that are manufactured inside the target country to the home country.

c) Exporting is where a company sells its physical products that are manufactured outside the target country to the target country.

d) Exporting is where a company can exercise absolute control of all aspects of marketing.

Question 8

The choice and importance of the market entry mode depends on a number of factors. Which of the following is normally not a relevant factor?

a) Level of involvement

b) Level of risk and control

c) Speed of entry

d) Demographics

Question 9

International franchising has become a driving force to internationalization for many industries EXCEPT ____________.

a) clothing retailers

b) fast food

c) fresh cut flowers

d) petrol retailing

Question 10

Which of the following market entry modes allows the organization to exercise the highest levels of involvement and control?

a) Joint ventures

b) mergers

c) wholly owned subsidiaries

d) Licensing and franchising

Oxford University Press, Online Resource Centre, Chapter 07.

Chapter 07

Instructions