51.Which of the following NOT a disadvantage associated with exporting? a.potential

Question : 51.Which of the following NOT a disadvantage associated with exporting? a.potential : 1413274


51.Which of the following is NOT a disadvantage associated with exporting?

a.potential loss of proprietary technologies

b.high transportation costs

c.loss of control over distribution activities

d.tariffs imposed by local governments

52.A licensing agreement

a.results in two firms agreeing to share the risks and the resources of a new venture.

b.is best way to protect proprietary technology from future competitors.

c.allows a foreign firm to purchase the rights to manufacture and sell a firm’s products within a host country.

d.can be greatly impacted by currency exchange rate fluctuations.

53.Which of the following is NOT a typical disadvantage of licensing?

a.little control over the marketing of the products

b.licensees may develop a competitive product after the license expires

c.lower potential returns than the use of exporting or strategic alliances

d.incompatibility of the licensing partners

54.All of the following are reasons why firms use international strategic alliances EXCEPT

a.sharing of risks and resources

b.alliances facilitate the development of new capabilities

c.learning new competencies particularly those related to technology

d.strategic alliances are easy to manage

55.One of the primary reasons for failure of cross-border strategic alliances is

a.the incompatibility of the partners.

b.conflict between legal and business systems.

c.security concerns and terrorism.

d.high debt financing.

56.If conflict in a strategic alliance or joint venture is not manageable, a(n) _______may be a better option.

a.licensing strategy

b.exporting strategy


d.new wholly-owned subsidiary

57.Which of the following is NOT a disadvantage of international acquisitions?

a.They are very expensive and often require debt financing.

b.The acquiring firm has to deal with the regulatory requirements of a host country.

c.Merging the acquired and acquiring firm is difficult.

d.It is the slowest way to enter a new market.

58.The means of entry into international markets that offers the greatest control is



c.joint ventures.

d.greenfield ventures.

59.Which of the following is an advantage associated with greenfield ventures?

a.governmental support and subsidies in the host country

b.the lower cost of this type of venture

c.the level of control over the firm’s operations

d.the lower level of risks involved

60.If intellectual property rights in an emerging economy are not well-protected, the number of firms in the industry is rapidly growing, and the need for global integration is high, ____ is the preferred entry mode.


b.strategic alliance

c.a joint venture or wholly-owned subsidiary




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