International Business Exam Questions with Latest Update

What are the different types of market entry strategy? - ANSWER-Exporting Licensing Franchising Wholly owned foreign enterprises Equity joint ventures/Strategic alliances Which of these strategies presents the lowest risk when it comes to internationalization? - ANSWER-Exporting Which of these strategies presents the highest risk when it comes to internationalization? - ANSWER-Wholly owned subsidiary When exchanging products internationally what are some things of concern? - ANSWER-Motivation (proactive or reactive) Government Policies (Tariffs & non-tariff barriers/Gov't intervention and burdensome regulations. Marketing Concerns (Weak legal environment in target market that hinders contracts, payment, intellectual property rights) Logistical & Distribution issues (inadequate infrastructure for logistics and distribution - e.g. in developing countries). What are the advantages of exporting? - ANSWER-Relatively low financial exposure Permits gradual market entry You acquire knowledge about local market Avoid restrictions on foreign investment What are the disadvantages of exporting? - ANSWER-Vulnerability to tariffs and entry barriers What are the 3 different forms of exporting? - ANSWER-Indirect (exporting that is accomplished by contracting with intermediaries located in the firm's home market) Direct (Exporting that is accomplished by contracted with intermediaries located in the foreign market) Intra-corporate