1. With _______________ the firm transacts with an intermediary based in its own home country. This intermediary in turn takes responsibility for exporting the product to one or more foreign countries.

1. Direct exporting
2. Inverse exporting
3. Indirect exporting
4. Regulated exporting

2. Entry modes may be classified by their risk/reward profile. In this context hierarchical modes represent a sharing of the risks and rewards between two or more firms. True/False?

1. True
2. False

3. Under this type of agreement, one firm permits another to use its intellectual property (e.g. trademarks, copyrights or patents) in exchange for royalty compensation. What is this type of agreement called?

1. Foreign direct investment
2. Indirect exporting
3. M&A
4. Licensing

4. Which mode of entry carries the highest risk and the highest potential return?

1. Indirect exporting
2. Licensing
3. Franchising
4. Foreign direct investment
5. Direct exporting

5. Some firms utilize the same entry mode every time they expand into a new foreign market. Such firms are said to be following the _________________ rule in the selection of an entry mode.

1. Naïve
2. Pragmatic
3. Strategy
4. Repetitive