Imagine that a major Italian automobile manufacturer has decided to move into the Asian market by setting up a JV with a South Korean automobile manufacturer. The Italian firm is:
a. using a non-equity mode of entry.
b. using an equity mode of entry.
c. must not be an MNE.
d. using a mode of entry.
Answer: b. using an equity mode of entry.
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Entering Foreign Markets
- In the LLL framework, _____ refers to an emerging MNE's ability to identify and bridge gaps in its market.
- A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India or U.S.A or any other country. This is an example of _____.
- The country-of-origin effect refers to _____.
- Greenfield operations are similar to acquisitions in that they are both examples of _____.
- A greenfield operation refers to _____.
- Co-marketing refers to _____.
- A(n) _____ is a non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.
- Which of the following is true of licensing/franchising?
- Which of the following is true of indirect exports?
- A disadvantage of acquisitions is _____.
- An advantage of joint ventures is _____.
- Which of the following is an advantage of R&D contracts?
- Which of the following is a disadvantage of licensing and franchising?
- Which of the following is an advantage of direct exports?
- Which of the following entry modes is a type of strategic alliance?
- _____ are the most basic non-equity mode of entry, capitalizing on economies of scale in production concentrated in the home country and providing better control over distribution.
- Which of the following is an equity mode of entry?
- Which of the following is a non-equity mode of entry?
- Which of the following characterizes an MNE from a non-MNE?
- Which of the following is an advantage shared by both greenfield operations and acquisitions?
- The distinction between _____ is what defines an MNE from a firm that merely exports or imports.
- Which of the following is true of modes of entry?
- Which of the following is a benefit of large-scale entries?
- _____ refers to the amount of resources committed to entering a foreign market.
- Which of the following is a late-mover advantage?