D080 Module 8: Entry Strategies for Foreign Markets Quiz questions and answers 2025 ( GUARANTEED PASS )

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Azamar Inc. is a manufacturer of area rugs in Dalton, Georgia. The company wants to expand into international markets and decides to focus on Italy first. The chief executive officer (CEO) of the company prefers to enter this new market as quickly as possible.

The chief financial officer (CFO) wants to ensure that the risks of entering into the new market are understood so they can be managed within a tolerable limit, and the chief operating officer (COO) has concerns over shipping times and freight costs from the United States to Italy.

Because of the high concentration of apartments in most Italian cities, Azamar has decided that the largest area rug to be offered in the Italian market will be 6ft x 9ft, and most of the Italian company's rugs will be 5ft x 7ft. In the United States, the largest size is 12ft x 12ft, and the most popular size is 9ft x 10ft.

Q1: Which approach will save costs through a quick entry by Azamar?

A. Greenfield

B. Acquisition

C. Partnering

D. Franchising

D. Franchising

Franchising means Azamar can get a fast entry into the Italian market without spending too much money to execute the strategy. That is why this strategy will save cost through a quick entry.

Q2: Which marketing strategy is being used when Azamar decides to offer smaller sizes in the new country?

A. Brand recognition

B. Product adaptation

C. Standardization

D. Glocalization

B. Product adaptation

Product adaptation refers to making products better align with local needs.

Q3: Azamar discovers that there are import restrictions on area rugs in Italy.

Which low-risk strategy should Azamar use to enter this foreign market?

A. Integration

B. Joint ventures

C. Acquisitions

D. Licensing

D. Licensing

Licensing is an agreement that Azamar can have with another company in Italy to manufacture area rugs to their specifications but under the name of the Italian company. This is an example of a low-risk entry strategy to a foreign market.

Q4: Which factor is a risk for Azamar if it decides to export its area rugs to Italy through a distributor?

A. The distributor could switch to cheaper supplier of area rugs to get better prices.

B. The manufacturer would take too long to develop the operation processes to be successful.

C. The manufacturer and distributor will have to share profits with other Italian companies.

D. The manufacturer will lose control over the quality of the area rugs being exported to Italy.

A. The distributor could switch to cheaper supplier of area rugs to get better prices.

Distributors can switch or even threaten to switch to get lower prices.

Q5: Why would Azamar want to expand business outside of the United States and into Italy?

A. To reduce diversification of operation

B. To increase operating expenses

C. To diversify transportation costs

D. To support market growth

D. To support market growth

Market growth is a reason why businesses seek to expand abroad as it leads to increased sales and profits for Azamar.