11.

When competitors are ______, ______ is weaker and price is _____ important as a competitive weapon.

a.

limited, consumers bargaining power, less

b.

unlimited, consumers bargaining power, more

c.

unlimited, consumers demand elasticity, less

d.

limited, consumers demand elasticity, more

e.

limited, consumers bargaining power, more

12.

Which sentence is incorrect?

a.

The optimal choice of entry mode depends on the firms strategy.

b.

When technological know-how constitutes a firms core competence, wholly owned subsidiaries are preferred.

c.

When management know-how constitutes a firms core competence, foreign franchises controlled by joint ventures seem to be optimal.

d.

When the firm is pursuing a global standardization or transnational strategy, wholly owned subsidiaries are the best entry mode.

e.

If a high-tech firm sets up operations in a foreign country, licensing and joint venture arrangements should be considered.