1|Page
IBUS 401 Exam 1 2025, international business
exam, IBUS 401 questions and answers, global
strategy test, IBUS final 2025, business exam
prep
exporting, licensing, contract manufacturing, joint
venture, acquisition (or equity stake) - .....ANSWER
...✔✔ Low cost/low investment TO high cost/high
investment MARKET-ENTRY strategies (5)
mass-market - .....ANSWER ...✔✔ If objective of
entering a market is penetration, executives are advised
to embrace a ___-___ mindset
Licensing - .....ANSWER ...✔✔ Market-entry strategy
involving a contractual arrangement whereby one
company makes a legally protected asset available to
another company in exchange for
royalties/fees/compensation
- generates revenue flow with little new investment
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- good for company with advanced tech, strong brand
image, or valuable intellectual property
licensed asset - .....ANSWER ...✔✔ may be a brand
name, company name, patent, trade secret, product
formulation
licensing - .....ANSWER ...✔✔ Companies that make
much use of ___ include Hugo Boss, Giorgio Armani,
Disney, Caterpillar, NBA, Coca-Cola
contract manufacturing, franchising - .....ANSWER
...✔✔ two specialized forms of licensing that are
widely used in global marketing
local tastes - .....ANSWER ...✔✔ Licenses can be
adapted to ___ ___
e.g. Disney can adapt the colors, etc. of characters to fit
certain areas - creates synergies from the theme parks
to all sorts of business outlets
e.g. Caterpillar clothing with logo
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263 - .....ANSWER ...✔✔ Licensed goods sales
totaled $___ billion in 2016
borrow - .....ANSWER ...✔✔ Disadvantage of
licensing is that it allows another company to ___ or
leverage and exploit your company's resources (may
develop their own similar product and become an
industry leader as well)
cross-licensing - .....ANSWER ...✔✔ Licensors should
include a provision for ___-___ which guarantees
licensees will share developments with licensor (to
prevent licensee from just stealing
product/ideas/technology and developing own)
contract manufacturing - .....ANSWER ...✔✔ a
licensing agreement where a global company provides
technical specifications to a sub-contractor or local
manufacturer who then oversees production
- allows the company to focus on design & marketing
- sub-contractor fulfills manufacturing
Con: low labor costs for manufacturers can cause
publicity issues for the head company
, 4|Page
franchising, low, distant - .....ANSWER ...✔✔ Contract
between a parent company-franchisor and a franchisee
that allows the franchisee to operate a business
developed by the franchisor in return for a fee and
adherence to franchise-wide policies
Appropriate strategy when barriers to entry are ___,
yet market is culturally ___ (franchisee brings their
knowledge of the local market into play here)
buy, tough, government, repatriated, supplies, space,
partners - .....ANSWER ...✔✔ Questions to ask before
franchiser allows expansion to another country:
Will local customers ___?
Is local competition ___?
Does local ___ respect trademark and franchise rights?
Can profits be easily ___?
Can you buy ___ locally?
Is commercial ___ available and rent affordable?
Are local ___ knowledgable on franchising and
financially sound?
IBUS 401 Exam 1 2025, international business
exam, IBUS 401 questions and answers, global
strategy test, IBUS final 2025, business exam
prep
exporting, licensing, contract manufacturing, joint
venture, acquisition (or equity stake) - .....ANSWER
...✔✔ Low cost/low investment TO high cost/high
investment MARKET-ENTRY strategies (5)
mass-market - .....ANSWER ...✔✔ If objective of
entering a market is penetration, executives are advised
to embrace a ___-___ mindset
Licensing - .....ANSWER ...✔✔ Market-entry strategy
involving a contractual arrangement whereby one
company makes a legally protected asset available to
another company in exchange for
royalties/fees/compensation
- generates revenue flow with little new investment
,2|Page
- good for company with advanced tech, strong brand
image, or valuable intellectual property
licensed asset - .....ANSWER ...✔✔ may be a brand
name, company name, patent, trade secret, product
formulation
licensing - .....ANSWER ...✔✔ Companies that make
much use of ___ include Hugo Boss, Giorgio Armani,
Disney, Caterpillar, NBA, Coca-Cola
contract manufacturing, franchising - .....ANSWER
...✔✔ two specialized forms of licensing that are
widely used in global marketing
local tastes - .....ANSWER ...✔✔ Licenses can be
adapted to ___ ___
e.g. Disney can adapt the colors, etc. of characters to fit
certain areas - creates synergies from the theme parks
to all sorts of business outlets
e.g. Caterpillar clothing with logo
,3|Page
263 - .....ANSWER ...✔✔ Licensed goods sales
totaled $___ billion in 2016
borrow - .....ANSWER ...✔✔ Disadvantage of
licensing is that it allows another company to ___ or
leverage and exploit your company's resources (may
develop their own similar product and become an
industry leader as well)
cross-licensing - .....ANSWER ...✔✔ Licensors should
include a provision for ___-___ which guarantees
licensees will share developments with licensor (to
prevent licensee from just stealing
product/ideas/technology and developing own)
contract manufacturing - .....ANSWER ...✔✔ a
licensing agreement where a global company provides
technical specifications to a sub-contractor or local
manufacturer who then oversees production
- allows the company to focus on design & marketing
- sub-contractor fulfills manufacturing
Con: low labor costs for manufacturers can cause
publicity issues for the head company
, 4|Page
franchising, low, distant - .....ANSWER ...✔✔ Contract
between a parent company-franchisor and a franchisee
that allows the franchisee to operate a business
developed by the franchisor in return for a fee and
adherence to franchise-wide policies
Appropriate strategy when barriers to entry are ___,
yet market is culturally ___ (franchisee brings their
knowledge of the local market into play here)
buy, tough, government, repatriated, supplies, space,
partners - .....ANSWER ...✔✔ Questions to ask before
franchiser allows expansion to another country:
Will local customers ___?
Is local competition ___?
Does local ___ respect trademark and franchise rights?
Can profits be easily ___?
Can you buy ___ locally?
Is commercial ___ available and rent affordable?
Are local ___ knowledgable on franchising and
financially sound?
