1) A joint venture strategy is ________ risky than a licensing strategy when ent
ID: 460993 • Letter: 1
Question
1) A joint venture strategy is ________ risky than a licensing strategy when entering the global market .
(A) less (B) more
2) In thinking about it Jerzy realizes that he and Leon could create a shoe manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon's expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy.
(A) Global outsourcing (B) Acquisition (C) Licensing (D) Joint venture
3) Jerzy wants to keep his overall costs down and to enter into the international marketplace slowly and carefully. He is considering the use of countertrade, where he would send his shoes to Spain in return for high-quality Spanish cowhides.
(A) Franchising (B) Acquisition (C) Joint venture (D) Exporting
4) Jerzy thinks that he would like to work closely with someone who really knows the Spanish market, and he is not concerned with maintaining high levels of control over his product. He is considering giving Leon the rights to use his shoe designs for free. This will keep Jerzy's costs down but still give his shoes a wider exposure.
(A) Acquisition (B) Licensing (C) Outsourcing (D) Exporting
Explanation / Answer
1. more
Since joint ventures can fails or fall victim to takeovers or after some period of working jointly partners simply can't agree on marketing stategies.
2. joint venture
In Joint venture the domestic firm joins with the foreign firm to form new entity by sharing their expertises. Here Jerzy is expert in shoe design and Leon is expert in navigating Spanish management and business practices, so by applying both this expertises in synergy they can compete in spanish market.
3. Exporting
Exporting is a method of entering into global market by selling product that are produced domestically to the foreign countries. Countertrade is also a part of exporting where one firm agrees on selling a product in counter of receiving another product from the buying firm. Here, Jerzy is considering the use of countertrade, where he would send his shoes designed and produced domestically to Spain in return for high-quality Spanish cowhides. Thus, Jerzy is exporting.
4. (B) Licensing
In Licensing, a licensor allows another domestic of foreign firm to use its manufacturing, process, trademarks, design, etc. so has to get good exposure to their products. Here Jerzy is considering to give rightes to use his shoe designs for free to the Leon to get wider exposure in spain market. Thus, Jerzy is Licensing its Shoe manufacturing to Leon.
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