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Modes of Entry into Foreign Markets

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Questions and Answers

What is the most prevalent mode combination used by companies to enter or develop activities in foreign markets?

Licensing and a franchise

Franchising and a joint venture

Licensing and a joint venture (correct)

Franchising and a franchise

What are the four different forms of multiple modes?

Unrelated, segmented, complementary, and competing (correct)

Segmented, complementary, competing, and franchising

Unrelated, segmented, competing, and franchising

Unrelated, complementary, competing, and franchising

What is dual distribution?

A mode of competition where two firms compete by selling the same product to different segments of the market

A mode of competition where two firms compete by taking over the export market of an existing, local independent distributor

A mode of competition where two firms compete by using different modes to target different segments of the market

A mode of entry where a manufacturer exercises better control over the representatives (correct)

What is an example of indirect competition?

<p>Taking over the export market of an existing, local independent distributor</p> Signup and view all the answers

What kind of support might be provided by segmented multiple modes of competition?

<p>Indirect support</p> Signup and view all the answers

Study Notes

Multiple modes are used by companies to enter or develop activities in different foreign markets.
The most prevalent mode combination is licensing and a joint venture.
There are four different forms of multiple modes: unrelated, segmented, complementary, and competing.
Dual distribution enables the manufacturer to exercise better control over the representatives.
Segmented multiple modes of competition exist in the foreign market, where firms compete by using different modes to target different segments of the market.
Competing modes may include head-on competition, where the entrant firm attempts to take over the export market of an existing, local independent distributor, and indirect competition, where the entrant firm competes by selling the same product to different segments of the market.
Segmented multiple modes of competition are not directly supportive of each other, but there are many ways in which indirect support might be provided.

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Description

Test your knowledge of the different modes used by companies to enter or develop activities in foreign markets, including licensing, joint ventures, dual distribution, and the forms of multiple modes like unrelated, segmented, complementary, and competing.