FITTSKILLS INTERNATIONAL MARKET ENTRY STRATEGIES

SAMPLE EXAMINATION
THIS DOCUMENT CONTAINS 6 SAMPLE EXAM QUESTIONS

The time allocated for the examination is 3 hours. The exam will be open book. The exam is made up of the following: 20 basic-level multiple-choice questions; 20 intermediate-level multiple-choice questions; and 5 high-level multiple-choice questions based on a situation/case.

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FITTskills: International Market Entry Strategies

Sample Exam Questions

Basic-level (1-point questions)

1. What are the two main types of market entry strategy? a) Domestic production and foreign production b) Trading strategies and investment strategies c) Exporting strategies and importing strategies d) Partnering strategies and solo strategies 2. What type of market entry strategy is a joint venture? a) A foreign direct investment strategy b) A partnering strategy c) A transfer-related strategy d) A licensing strategy

Intermediate-level (2-point questions)

3. Diltons Brewery is in joint venture negotiations with a South Korean producer of alcoholic beverages, Donju. Dilton wants to ensure that the joint venture can acquire any brewery facilities that Donju purchases during the term of the joint venture. What clause can Dilton request be added to the partnership agreement? a) A compulsory purchase clause b) An area of interest clause c) A competition clause d) A conflict of interest clause 4. For an exporter wishing to find an overseas partner, which of the following partner characteristics is the most important? a) The partners marketing capabilities in the foreign market b) The partners profits over the past two years c) The management style of the partners CEO d) The modernity of the partners equipment and technology

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FITTskills: International Market Entry Strategies

Sample Exam Questions

High-level (5-point questions, based on supplied situation/case)

SITUATION/CASE
BATT Training is a US-based company that specializes in delivering antiterrorism training courses to multinationals. It has a small, highly trained group of employees that travel to client sites in countries around the world. In recent years, BATT has been receiving more requests for training in Europe than it can handle. Accordingly, it has decided to start up European franchise operations. It intends to sell BATT franchises to training companies that can then deliver the BATT-developed training courses to clients. BATT will provide leads to clients and in-depth training.

5. What is the main benefit that franchisees will provide to BATT? a) They will provide a regular source of additional funds b) They will enhance BATTs reputation in markets worldwide c) They will enable BATT to retain more clients d) They will increase BATTs profits 6. Which of the following factors is most likely to have a significant impact on the success or failure of a BATT franchise operation? a) The partners marketing capabilities b) The partners technical abilities c) The partners financial resources d) The partners strategic objectives

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