52. Which of the following is a disadvantage of small-scale entry for an international firm considering foreign
expansion?
53. Small-scale entry into a foreign market makes it difficult to build market share because it:
54. Which of the following is the most likely outcome of a foreign firm entering a developed nation on a small
scale after other international businesses in the firm’s industry?
55. Which of the following is a course of action suggested by Christopher Bartlett and Sumantra Ghoshal for
companies based in developing nations?
56. Which of the following is an advantage of choosing exporting as a mode of entry into foreign markets?
57. How can firms avoid incurring high transport costs when exporting bulk products?
58. In exporting, problems with local marketing agents can be overcome by:
59. In which of the following modes of entry into foreign markets does a firm agree to set up an operating plant
for a foreign client and hand over the plant when it is fully operational?
60. Which of the following describes a turnkey project?
61. Which of the following is an advantage of turnkey projects as a mode of entry into foreign markets?
62. Turnkey projects being short-term propositions can be disadvantageous for a firm if a country subsequently
proves to be a major market for the output of the process that has been exported. The firm can get around this
problem by:
63. In terms of licensing, which of the following is an intangible property?
64. Licensing is NOT attractive to which of the following firms?
65. Which of the following is a drawback of licensing as a mode of entry into foreign markets?
66. Which of the following is an example of an industry in which cross-licensing agreements are increasingly
becoming common?
67. Franchising as a mode of entry into foreign markets is employed primarily by:
68. Which of the following is an advantage of franchising as a mode of entry into foreign markets?
69. Which of the following is a disadvantage of franchising?
70. Which of the following is an advantage of joint ventures as a mode of entry into foreign markets?
71. What triggers the conflict of interest over strategy and goals in joint ventures?
72. How can a wholly owned subsidiary be established in a foreign market?
73. Which of the following entry modes into a foreign market best serves a high-tech firm?
74. When should a firm configure its value chain to maximize value at each stage?
75. The risks associated with learning to do business in a new culture are less if the firm:
76. Which of the following is true of international firms considering foreign expansion?
77. A distinction can be drawn between firms whose core competency is in which of the following?
78. Which of the following modes of entry into foreign markets can result in a lack of control over quality?
79. Why should a high-tech firm avoid selecting licensing as a mode of entry?
80. Axiom International, an Australian company, wants to expand its operations to China, a country that is
politically, culturally, and economically different. The firm needs to select a mode of entry that would give it
access to local knowledge, allow sharing of development costs and risks, and also be politically acceptable.
Which of the following modes of entry into foreign markets is most suitable for Axiom International?
81. Jupiter Systems is a high-tech firm looking to set up operations in a foreign country. The firm’s core
competency is in technological know-how. Which of the following modes of entry would be most favorable to
the firm if it wants to keep a tight control over its technology?
82. Which of the following modes of entry is suitable for service firms where the risk of losing control over the
management skills or technological know-how is not much of a concern, and where the firms’ valuable asset is
their brand name?
83. Which of the following is a disadvantage of wholly owned subsidiaries as a mode of entry into foreign
markets?