International Business Strategy Quiz

Expand market share (correct)

Gain economies of scale (correct)

Increase profitability (correct)

Gain tax advantages (correct)

All of the above (correct)

Strategic alliances

Joint ventures

Franchising

Product differentiation (correct)

Exporting

Cross-border acquisitions

Licensing

Indirect exporting is more expensive than direct exporting, while direct exporting is less expensive than direct exporting.

Direct exporting is more expensive than indirect exporting, while indirect exporting is less expensive than direct exporting.

Indirect exporting involves selling products directly to foreign customers, while direct exporting utilizes intermediaries.

Direct exporting involves selling products directly to foreign customers, while indirect exporting utilizes intermediaries. (correct)

<p>All of the above</p> Signup and view all the answers

<p>A licensing agreement grants rights to use intellectual property like trademarks and patents, while a franchising agreement provides a complete business model, including operational procedures and branding.</p> Signup and view all the answers

<p>Long-term commitment, Active control over the foreign operations, Significant control over the foreign operations</p> Signup and view all the answers

<p>A full service, fully developed, ready to use project that is sold to a buyer who can operate the project without any additional work</p> Signup and view all the answers

<p>Joint Venture usually involves a complete merger of two companies</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>Indirect exporting can be less expensive and require fewer resources compared to direct exporting. It can be a good option for companies new to international markets or those with limited resources. It also allows companies to tap into existing distribution networks and gain valuable market insights. However, companies have less control over the sales process, pricing, and customer relationships when using indirect exporting.</p> Signup and view all the answers

<p>International business poses several challenges: Political and economic instability, Cultural differences, Language barriers, Foreign currency exchange fluctuations, Trade regulations and tariffs, Competition in foreign markets, Logistical complexities, and Differences in legal systems and regulatory compliance.</p> Signup and view all the answers

<p>Licensing primarily involves the granting of permission to utilize intellectual property such as trademarks or patents while franchising includes the transfer of an entire business system, encompassing branding, operational procedures, and marketing strategies. Licensing is often employed by manufacturing companies while franchising is typically favored in the service industry, although this is not always the case.</p> Signup and view all the answers