If a firm has strong assets, it is likely that they enter into international markets on their own without assistance from local, host market players. With strong assets and a relatively high level of ownership advantage, the firm can be confident that it can derive profits by exploiting its assets which other firms do not possess. What entry modes are typically not considered under such a situation?Group of answer choicesfull acquisitionexportsWholly-owned subsidiaryjoint-venture

If a firm's1. competitive advantage is based on firm-specific resources such as ownership of critical technology or of a strong brand,2. the firm is planning on entering into a foreign market where the intellectual property protection regime is strong, 3. the firm does not want to take on any significant risk of investment What will be the most reasonable entry mode for the firm? Group of answer choicesjoint venturelicensingmajority acquisitionWholly-owned subsidiary

Arrange the following modes of entry in foreign markets with the mode of entry having least commitment, risk, control and profit potential: (A) Company hires a local manufacturer to produce the product(B) Company starts exports working through domestic export agents and export management companies(C) Company joins hands with local investor and forms a company in which both share ownership and control(D) Company starts export using domestic export department and overseas sales branch(E) Company offers a complete brand concept and operating system to a investor in return of certain feeChoose the correct answer:Group of answer choices(B), (D), (A), (E), (C)(D), (B), (A), (E), (C)(D), (B), (E), (C), (A)(B), (D), (E), (A), (C)

A joint-venture is one of the equity-based entry modes where one firm partners with another to establish a new entity in a foreign market. While there are several advantages of this entry mode including access to resources of the partner, there are certain disadvantages such as the risk of losing control to the partner. The key success factors for a joint-venture includes the followingGroup of answer choicesability to get local acceptancestrategic fit and complementarity with partnerrepatriable profitsquality control of partner firm

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

Required informationSkip to questioniSeeit!: Entering Foreign Markets This brief video describes several of the various modes of entry that can be used by a business seeking to engage in international trade. This activity is important because exporting, licensing agreements, franchising, strategic alliances, joint ventures, and foreign direct investment are the major options that exist for a business wishing to enter global markets, and this video describes several advantages and disadvantages of major options. The goal of this activity is to demonstrate your understanding of the modes of entry options available to a business seeking to expand internationally. Click the ► button to watch the video. Then, answer the questions that follow. What is a major pitfall of franchising?Multiple ChoiceAll of the answers are correct.Control is held tightly by the franchisor.Franchisees have a right to run the business as they see fit in all areas of operation.Less money is made through franchising.The brand is at risk by franchisees who may deliver poor products.