International Marketing Entry Modes Quiz
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Questions and Answers

What type of entry mode allows for quick changes with minimal cost?

  • Direct indirect investment
  • Intermediate modes (correct)
  • Export modes
  • Hierarchical modes
  • What type of entry mode provides the highest level of control in international marketing?

  • Joint venture
  • Wholly-owned subsidiary (correct)
  • Contract manufacture
  • Franchising
  • Which of the following is an example of a hierarchical mode of entry?

  • Wholly-owned subsidiary (correct)
  • Export management companies
  • Trading companies
  • Piggyback operations
  • Which of the following entry modes is characterized by medium control?

    <p>Export management companies</p> Signup and view all the answers

    What do export management companies fall under in terms of entry modes?

    <p>Export modes</p> Signup and view all the answers

    Which entry mode requires the most direct control over operations?

    <p>Wholly-owned subsidiary</p> Signup and view all the answers

    What entry mode would likely involve the least control for a firm?

    <p>Direct exporting</p> Signup and view all the answers

    Which of the following is a hierarchical mode of entry that offers high control?

    <p>Company acquisition</p> Signup and view all the answers

    What is a primary characteristic of export modes?

    <p>Minimal initial market commitment</p> Signup and view all the answers

    Which entry mode combines two firms for a specific project, reflecting medium control?

    <p>Joint venture</p> Signup and view all the answers

    Which entry mode allows for maximum control by the firm?

    <p>Wholly-owned subsidiary</p> Signup and view all the answers

    What is a common characteristic of intermediate modes of foreign market entry?

    <p>Shared control with local partners</p> Signup and view all the answers

    Which entry mode is least likely to involve significant risk dissemination for the firm?

    <p>Wholly-owned subsidiary</p> Signup and view all the answers

    Which option is an example of an export mode of market entry?

    <p>Export management company</p> Signup and view all the answers

    In which entry mode would a firm's know-how be most vulnerable to expropriation?

    <p>Joint venture</p> Signup and view all the answers

    What defines hierarchical modes in foreign market entry?

    <p>Direct investment such as a wholly-owned subsidiary</p> Signup and view all the answers

    Which entry mode requires a higher level of resource commitment?

    <p>Strategic alliances</p> Signup and view all the answers

    What is an example of an export mode in foreign market entry?

    <p>Using a sales force</p> Signup and view all the answers

    Which of the following represents an intermediate mode of market entry?

    <p>Franchising or licensing agreements</p> Signup and view all the answers

    What characterizes export modes in terms of resource commitment?

    <p>Generally entail low resource commitment</p> Signup and view all the answers

    What does the term 'entry mode' refer to in a foreign market context?

    <p>The chosen method for placing products or services in a market</p> Signup and view all the answers

    Which type of entry mode involves direct sales from the home country to customers in a foreign country?

    <p>Export modes</p> Signup and view all the answers

    Which of the following is NOT a primary type of entry mode?

    <p>Franchise modes</p> Signup and view all the answers

    Hierarchical modes typically involve which aspect of foreign entry?

    <p>Establishing foreign subsidiaries or joint ventures</p> Signup and view all the answers

    What is one of the key resources a company may choose to place in a foreign market?

    <p>Human skills and technology</p> Signup and view all the answers

    What are the modes categorized under Hierarchical Modes?

    <p>Wholly-owned subsidiary, Company acquisition, Assembly operations</p> Signup and view all the answers

    Which of the following is NOT considered an Intermediate Mode?

    <p>Company acquisition</p> Signup and view all the answers

    Which level of involvement utilizes Direct Exporting?

    <p>Export management companies</p> Signup and view all the answers

    What does a joint venture exemplify in terms of market entry?

    <p>Intermediate Mode</p> Signup and view all the answers

    Which of the following is a characteristic of Indirect Exporting?

    <p>Utilizes trading companies or export management companies</p> Signup and view all the answers

    What role does the retail chain serve in the export mode of market entry?

    <p>It acts as an intermediary for sales and distribution.</p> Signup and view all the answers

    Which of the following best describes a joint venture in the intermediate mode?

    <p>A partnership with a local company.</p> Signup and view all the answers

    In hierarchical modes, what is the purpose of internal transfer prices?

    <p>To establish prices for products moved within the company.</p> Signup and view all the answers

    What distinguishes the foreign sales subsidiary in hierarchical modes?

    <p>It is a fully-owned branch of the company.</p> Signup and view all the answers

    What is the primary function of an agent/importer in export modes?

    <p>To facilitate sales and distribution on behalf of the company.</p> Signup and view all the answers

    In what aspect do export modes primarily differ from hierarchical modes?

    <p>The use of internal transfer prices.</p> Signup and view all the answers

    Which of the following is not a characteristic of export modes?

    <p>Relies solely on direct sales.</p> Signup and view all the answers

    What is a key feature of intermediate modes in the market entry process?

    <p>Formation of partnerships with locals through joint ventures.</p> Signup and view all the answers

    Study Notes

    Foreign Market Entry Modes

    • Entry mode is an institutional arrangement for the entry of a company's products or services into a new foreign market
    • It refers to the chosen method for placing a company's products, technology, human skills, management, or other resources into a foreign country
    • The main types are:
      • Export modes
      • Intermediate modes
      • Hierarchical modes

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    Description

    Test your knowledge on different entry modes in international marketing. This quiz covers various aspects from control levels to examples of hierarchical and export modes. Perfect for students and professionals looking to enhance their understanding of market entry strategies.

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