Quiz on Modes of Entering International Business

Which of the following is not a mode of entering into International Business?

• Exporting

• Licensing

• Selling

• Franchising

Which mode of entry involves the least investment and risk?

• Direct investment

• Joint ventures

• Licensing

• Indirect exporting

What is a key advantage of direct exporting?

• Greater control over marketing

• No need for market research

• Lower investment costs

• Less risk involved

Which of the following is NOT a mode of entering international business?

• Direct exporting

• Indirect exporting

• Local sourcing

• Franchising

What is a disadvantage of licensing?

• Requires extensive market research

• Loss of control over production

• Limited market access

• High initial investment

In a joint venture, what do the partners share?

• Market research data

• Export documentation

• Ownership and control

• Sales representatives

What is the primary reason companies prefer to enter neighboring countries first?

• Easier logistics

• Lower competition

• Cultural similarities

• Higher profit margins

Which of the following is an example of franchising?

• McDonald's opening a new restaurant

• Coca-Cola licensing its brand

• A firm entering a joint venture

• A company exporting goods through agents