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GMS 522 Chapter 8 Questions With Verified Answers

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GMS 522 Chapter 8 Questions With Verified Answers Entry mode - Export - Answer-low risk/low return/little control) - Direct/indirect exporting /.Entry mode - Hierarchical - Answer-full control, 100% reward = risk) - Wholly owned foreign subsidiary, Cross border acquisition, Greenfield /...

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  • September 8, 2024
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  • 2024/2025
  • Exam (elaborations)
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  • GMS 522 Chapter 8
  • GMS 522 Chapter 8
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Entry mode - Export - Answer-low risk/low return/little control) - Direct/indirect
exporting

/.Entry mode - Hierarchical - Answer-full control, 100% reward = risk) - Wholly owned
foreign subsidiary, Cross border acquisition, Greenfield

/.Entry mode - Intermediate - Answer-risk & reward shared/some control) - Licensing,
IJVs, alliance

/.Entry mode - Selection - Answer-critical long run success - Own risk vs. reward profile,
degree of control, managerial expertise leve

/.Entry modes - Answer-institutional arrangement firms used to penetrate international
markets

export, intermediate, hierarchical, selection

/.Exporting - Answer-manufactured in home country, shipped/marketers in ≥1 foreign
market

/.Exporting - Direct - Answer-firm transacts directly with market intermediary in foreign
country - risky

/.Exporting - Indirect - Answer-firm works w intermediary in home country Intermediary =
responsible

/.FDI - Control - Answer-> degree of ownership > control - protect tech/reputation, ^ $P

/.FDI - Cross-border acquisition - Answer-existing firm: assets transferred ≠ construct
lag

/.FDI - Full - Answer-consider importance of control to success, reaction of host govt -
Issues of transfer pricing, repatriation of profits & taxation

/.FDI - Greenfield investment - Answer-create new enterprise: cover all costs, fully liable

/.FDI - Partial - Answer-international Joint Ventures (≥2 orgs collab more than transition,
Advantages - overcome restrictions, open up/maintain ops, Disadvantages -
control/profit/loyalty conflict, disclosure, govt intrv

/.FDI - Reaction - Answer-may be problematic - sensitive industries: resources, finance

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