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Questions and Answers
What is the primary purpose of an entry mode?
What is the primary purpose of an entry mode?
- To implement a product market strategy (correct)
- To establish a production facility in a foreign country
- To form a joint venture with a local partner
- To export products to a new market
What is an example of an export mode?
What is an example of an export mode?
- Establishing a wholly owned subsidiary
- Forming a joint venture with a local partner
- Entering into a contractual agreement with a supplier
- Carrying out only the marketing operation (correct)
What is a characteristic of contractual modes?
What is a characteristic of contractual modes?
- The firm partners with others to produce and market products (correct)
- The firm exports products to a new market without any local presence
- The firm only markets products in a foreign country
- The firm has full control over the production and marketing process
What type of entry mode involves the establishment of a production facility in a foreign country?
What type of entry mode involves the establishment of a production facility in a foreign country?
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What is a common feature of joint ventures and wholly owned operations?
What is a common feature of joint ventures and wholly owned operations?
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Study Notes
Entry Mode
- An entry mode is a structural agreement that allows a firm to implement its product market strategy.
- It enables a firm to choose between two options:
- Carrying out only the marketing operation (export modes).
- Handling both production and marketing by itself or in partnership with others (contractual modes, joint ventures, wholly owned operations).
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Description
This quiz assesses your understanding of entry modes in international business, including export modes and contractual modes such as joint ventures and wholly owned operations.
