A firm wishing to become global must consider how many national markets to enter. A firm should enter fewer national markets when
Answer(s): D
According to Ayal and Zif, the following are factors indicating that few national markets should be entered:(1) entry costs are high;(2) market control costs are high;(3) product adaptation costs are high;(4) communication adaptation costs are high;(5) the first countries selected have large populations, high incomes, and high income growth;(6) a dominant firm can erect high entry barriers.
The least risky method of entering a market in a foreign country is by
Answer(s): A
An indirect export strategy operates through intermediaries, such as home-country merchants who buy and resell the product, home-country agents who negotiate transactions with foreign buyers fora commission, cooperatives that represent groups of sellers, and export-management firms that receive fees for administering the firm's export efforts. Indirect export requires lower investment than direct export and is less risky because of the intermediaries' expertise.
An advantage of a direct investment strategy when entering a foreign market is
Answer(s): C
Direct investment has many advantages:(1) cheaper materials or labor, (2) receipt of investment incentives from the host government, (3) a strong relationship with interested parties in the host country, (4) control of the investment, (5) a better image in the host country, (6) market access when domestic contest rules are in effect. However, direct investment is risky because of exposure to currency fluctuations, expropriation, potentially high exit barriers, and restraints on sending profits out of the country.
A firm that moves from not exporting on a regular basis to establishing plants in foreign countries has
The internationalization process is of crucial interest to nations that wish to encourage local firms to grow and to operate globally. According to Swedish researchers, it involves the following steps:(1) Lack of regular exports;(2) export via independent agents with a few markets, with later expansion to more countries;(3) creation of sales subsidiaries in larger markets; (4) establishment of plants in foreign countries.
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K.Tho Commented on October 05, 2023 Very helpful UNITED STATES