Entry Mode (Group 1)

1. Exporting involves: _____________________________

• Buying foreign companies.

• Selling products made in your country to customers in other countries.

• Sharing ownership with foreign partners.

• Building a new factory abroad.

4. Licensing allows a foreign company to: __________________________

• Share ownership equally with the original company.
  
  

• Build a business from scratch in another country.
  
  

• Manufacture and sell the original company’s products.
  
  

• Avoid royalty payments.

7. What does the franchisee usually pay to the franchisor?

• Full company ownership

• A percentage of sales as royalty

• Manufacturing rights

• None of the above

10. A strategic alliance is when two companies: _________________________

• Merge into one.
  

• Work together on shared goals while staying independent.

• Build a completely new business together.

• Compete in the same industry.

13. What is an advantage of acquisitions?

• Full control over distribution networks
  

• Rapid access to new markets

• Minimal financial risk

• Simplified negotiations