International Business: Entry Modes

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

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?

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?

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?

<p>Wholly owned operation (C)</p> Signup and view all the answers

What is a common feature of joint ventures and wholly owned operations?

<p>The firm has full control over the production and marketing process (C)</p> Signup and view all the answers

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).

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

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.