A major advantage of having a foreign subsidiary strategy is thatMultiple Choiceit requires the franchisee to follow the franchisor’s rules strictly.control is maintained by the expanding firm to limit key knowledge and information from being exposed to competitors.None of the answers are correct.it is the easiest form of international expansion.foreign subsidiaries have no major advantages over the rest of the modes of entry methods.

What major advantage does a foreign joint venture have?Multiple ChoiceOverall risk is significantly reduced since foreign distributors essentially buy the product and market it.None of the answers are correct.It allows full control over the operation by the business originally seeking to expand internationally.No equity is exchanged in the joint venture, so no ownership is required in the new venture.It allows access to the international market with a partner who has knowledge of the market.

Which method of international expansion poses the greatest amount of risk?Multiple Choicejoint venturewholly owned foreign subsidiaryfranchisingexportinglicensing

Which of the following statements about pursuing international expansion is true?Multiple choice question.It ensures a firm's success as a low-cost competitor.A major benefit is gaining access to high-cost, exclusive input factors.It can enhance a firm's competitive advantage.It is a good option for a firm struggling in a domestic market.

Ownership-specific advantages•Here the focus is on the assets owned by the country which might give it a competitive edge vis-à-vis other firms operating in overseas markets.Question 2AnswerTrueFalse

Which of the following is not an advantage to a franchisee?Quick expansion into new territoriesBusiness advice from a franchisor with a successful track recordAdvertising and marketing support paid for by the franchisorSelling of a known, popular product