An Advantage of Choosing Exporting as a Mode of Entry

question 5

Multiple Choice

An advantage of choosing exporting as a mode of entry into foreign markets is that a firm

• A)can avoid the cost of establishing manufacturing operations in the host country.
• B)shares the development costs and risks with its host partner.
• C)can earn returns from process technology skills in countries where FDI is restricted.
• D)has access to local partner's knowledge.
• E)has the ability to engage in global strategic coordination.

Understand cultural differences in professional settings and their implications.

Recognize and explain the concept of ethnocentrism and its effects on international business relations.

Analyze the structure and dynamics of different types of networks within and outside organizations.

Appreciate the impact of personal experiences in foreign cultures on professional behavior and attitudes.

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Definitions:

Manufacturing Cycle Efficiency

A metric that measures the efficiency of the manufacturing process by comparing the value-added production time to the total production time.

Non-value-added Time

Time spent in the production process that does not contribute to the end product's value or quality, often targeted for reduction in lean manufacturing practices.

Throughput Time

The amount of time it takes for a product to pass through a production process, from start to finish, including processing, inspection, and transit times.

Desirable

Something that is wanted or wished for because it is considered attractive, satisfying, or beneficial.