Question 1

Currency risks can be reduced by currency hedging or strategic and hedging.

Accepted Answer

A) True 
 B)False

Question 2

Institutional distance involves all of the following EXCEPT that which is:

Accepted Answer

A)  Regulatory. 
B)  Normative. 
C)  Cognitive. 
D)  Integrative. 
A)  Regulatory. 
B)  Normative. 
C)  Cognitive. 
D)  Integrative.

Question 3

​First-mover preemptive investments would include:

Accepted Answer

A)  ​Avoiding scarce resources. 
B)  ​Finding free-ride opportunities. 
C)  ​Waiting for market uncertainties to be resolved. 
D)  ​Cherry picking leading local suppliers and distributors. 
A)  ​Avoiding scarce resources. 
B)  ​Finding free-ride opportunities. 
C)  ​Waiting for market uncertainties to be resolved. 
D)  ​Cherry picking leading local suppliers and distributors.

Question 4

The bargaining power of buyers may lead to forward vertical integration.

Accepted Answer

A) True 
 B)False

Question 5

Selling the rights to intellectual property for a royalty fee happens with:

Accepted Answer

A)  Licensing/franchising. 
B)  Turnkey projects. 
C)  R&D contracts. 
D)  Co-marketing. 
A)  Licensing/franchising. 
B)  Turnkey projects. 
C)  R&D contracts. 
D)  Co-marketing.

Question 6

Turnkey projects reduce the competitiveness of foreign clients and increase their dependence when selling state of the art technology.

Accepted Answer

A) True 
 B)False

Question 7

​A key dimension in foreign entry decisions is the amount of resources committed to entering the foreign market,referred to as:

Accepted Answer

A)  ​Scale of entry. 
B)  ​Regulatory risk. 
C)  ​Local content requirement. 
A)  ​Scale of entry. 
B)  ​Regulatory risk. 
C)  ​Local content requirement.

Question 8

Backward vertical integration refers to vertical integration that has not been updated.

Accepted Answer

A) True 
 B)False

Question 9

The market potential of substitute products may encourage firms to bring them abroad.

Accepted Answer

A) True 
 B)False

Question 10

​One of the factors that explains why exporters choose intermediaries primarily is:

Accepted Answer

A)  ​The development of proprietary,technological leadership. 
B)  ​Information asymmetries concerning foreign markets. 
C)  ​Intermediaries share the same objectives as exporters. 
D)  ​Indirect exports provide more information about product performance overseas. 
A)  ​The development of proprietary,technological leadership. 
B)  ​Information asymmetries concerning foreign markets. 
C)  ​Intermediaries share the same objectives as exporters. 
D)  ​Indirect exports provide more information about product performance overseas.

Question 11

​Industries in which suppliers and buyers locate in a specific region are more likely to benefit from location-specific advantages.

Accepted Answer

A) True 
 B)False

Question 12

​A location-specific advantage that a firm with efficiency-seeking strategy would be:

Accepted Answer

A)  ​A location-specific advantage that a firm with efficiency-seeking strategy would be: 
B)  ​Strong market demand. 
C)  ​Economies of scale. 
D)  ​Innovative labor force. 
A)  ​A location-specific advantage that a firm with efficiency-seeking strategy would be: 
B)  ​Strong market demand. 
C)  ​Economies of scale. 
D)  ​Innovative labor force.

Question 13

​The liability of foreignness sometimes has a positive effect on customers' perception and their desire for products from a certain country.This concept is known as:

Accepted Answer

A)  ​Strategic hedging. 
B)  ​Country-of-origin effect. 
C)  ​OLI advantage. 
D)  ​Co-marketing. 
A)  ​Strategic hedging. 
B)  ​Country-of-origin effect. 
C)  ​OLI advantage. 
D)  ​Co-marketing.

Question 14

​Which of the following would NOT be considered an advantage of MNEs?

Accepted Answer

A)  Ownership.​ 
B)  ​Internalization. 
C)  ​Barriers. 
D)  ​Location. 
A)  Ownership.​ 
B)  ​Internalization. 
C)  ​Barriers. 
D)  ​Location.

Question 15

​What are the OLI advantages and how do they relate to MNEs?

Accepted Answer

​An MNE enters foreign markets via equit

Question 16

Firms may choose not to enter certain countries if:

Accepted Answer

A)  They possess rare firm-specific assets. 
B)  The transaction costs are be too low. 
C)  There are dissemination risks. 
D)  There is an authorized diffusion of firm-specific assets. 
A)  They possess rare firm-specific assets. 
B)  The transaction costs are be too low. 
C)  There are dissemination risks. 
D)  There is an authorized diffusion of firm-specific assets.

Question 17

Organizing firm-specific resources and capabilities as a bundle:

Accepted Answer

A)  Favors firms with strong complementary assets. 
B)  Prevents having assets integrated as a system. 
C)  Discourages use of them overseas. 
D)  Occurs only in domestic markets 
A)  Favors firms with strong complementary assets. 
B)  Prevents having assets integrated as a system. 
C)  Discourages use of them overseas. 
D)  Occurs only in domestic markets

Question 18

​One of the disadvantages of franchising is the risk of creating competitors.

Accepted Answer

A) True 
 B)False

Question 19

​Non-equity modes of entry include direct exports and licensing.

Accepted Answer

A) True 
 B)False

Question 20

​A host country's local content requirements are primarily an attempt to avoid the presence of screwdriver plants.

Accepted Answer

A) True 
 B)False

Currency risks can be reduced by currency hedging or strategic and hedging.

Institutional distance involves all of the following EXCEPT that which is:

First-mover preemptive investments would include:

The bargaining power of buyers may lead to forward vertical integration.

Selling the rights to intellectual property for a royalty fee happens with:

Turnkey projects reduce the competitiveness of foreign clients and increase their dependence when selling state of the art technology.

A key dimension in foreign entry decisions is the amount of resources committed to entering the foreign market,referred to as:

Backward vertical integration refers to vertical integration that has not been updated.

The market potential of substitute products may encourage firms to bring them abroad.

One of the factors that explains why exporters choose intermediaries primarily is:

Industries in which suppliers and buyers locate in a specific region are more likely to benefit from location-specific advantages.

A location-specific advantage that a firm with efficiency-seeking strategy would be:

The liability of foreignness sometimes has a positive effect on customers' perception and their desire for products from a certain country.This concept is known as:

Which of the following would NOT be considered an advantage of MNEs?

What are the OLI advantages and how do they relate to MNEs?

Firms may choose not to enter certain countries if:

Organizing firm-specific resources and capabilities as a bundle:

One of the disadvantages of franchising is the risk of creating competitors.

Non-equity modes of entry include direct exports and licensing.

A host country's local content requirements are primarily an attempt to avoid the presence of screwdriver plants.

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Diversifying, acquiring, and Restructuring

Strategizing, structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

Exam 6: Entering Foreign Markets

Currency risks can be reduced by currency hedging or strategic and hedging.

Institutional distance involves all of the following EXCEPT that which is:

​First-mover preemptive investments would include:

The bargaining power of buyers may lead to forward vertical integration.

Selling the rights to intellectual property for a royalty fee happens with:

Turnkey projects reduce the competitiveness of foreign clients and increase their dependence when selling state of the art technology.

​A key dimension in foreign entry decisions is the amount of resources committed to entering the foreign market,referred to as:

Backward vertical integration refers to vertical integration that has not been updated.

The market potential of substitute products may encourage firms to bring them abroad.

​One of the factors that explains why exporters choose intermediaries primarily is:

​Industries in which suppliers and buyers locate in a specific region are more likely to benefit from location-specific advantages.

​A location-specific advantage that a firm with efficiency-seeking strategy would be:

​The liability of foreignness sometimes has a positive effect on customers' perception and their desire for products from a certain country.This concept is known as:

​Which of the following would NOT be considered an advantage of MNEs?

​What are the OLI advantages and how do they relate to MNEs?

Firms may choose not to enter certain countries if:

Organizing firm-specific resources and capabilities as a bundle:

​One of the disadvantages of franchising is the risk of creating competitors.

​Non-equity modes of entry include direct exports and licensing.

​A host country's local content requirements are primarily an attempt to avoid the presence of screwdriver plants.

Strategizing Around the Globe

Managing Industry Competition

Leveraging Resources and Capabilities

Emphasizing Institutions, cultures, and Ethics

Growing and Internationalizingthe Entrepreneurial Firm

Making Strategic Alliancee and Networks Work

Managing Global Competitive Dynamics

Diversifying, acquiring, and Restructuring

Strategizing, structuring, and Learningaround the World

Governing the Corporation Around the World

Strategizing With Corporate Social Responsibility

Filters

First-mover preemptive investments would include:

A key dimension in foreign entry decisions is the amount of resources committed to entering the foreign market,referred to as:

One of the factors that explains why exporters choose intermediaries primarily is:

Industries in which suppliers and buyers locate in a specific region are more likely to benefit from location-specific advantages.

A location-specific advantage that a firm with efficiency-seeking strategy would be:

The liability of foreignness sometimes has a positive effect on customers' perception and their desire for products from a certain country.This concept is known as:

Which of the following would NOT be considered an advantage of MNEs?

What are the OLI advantages and how do they relate to MNEs?

One of the disadvantages of franchising is the risk of creating competitors.

Non-equity modes of entry include direct exports and licensing.

A host country's local content requirements are primarily an attempt to avoid the presence of screwdriver plants.