Question 1

As firms expand into more countries,they should recognize that:

Accepted Answer

A)  Foreign firms are less likely to be discriminated against. 
B)  Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness. 
C)  Foreign firms seldom are able to offset the liability of foreignness and still have some competitive advantage. 
D)  Discrimination against foreign firms happens in informal ways and rarely in formal ways. 
A)  Foreign firms are less likely to be discriminated against. 
B)  Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness. 
C)  Foreign firms seldom are able to offset the liability of foreignness and still have some competitive advantage. 
D)  Discrimination against foreign firms happens in informal ways and rarely in formal ways.

Question 2

Under the Stage Model school of thought firms will enter culturally similar countries during their first stage of internationalization.

Accepted Answer

A) True 
 B)False

Question 3

​Small firms in a large domestic market are less likely to internationalize because of their relatively poor resource base and large size of their domestic market.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a location-specific advantage?

Accepted Answer

A)  Agglomeration. 
B)  Knowledge spillovers. 
C)  An unskilled labor force. 
D)  A pool of specialized suppliers and buyers. 
A)  Agglomeration. 
B)  Knowledge spillovers. 
C)  An unskilled labor force. 
D)  A pool of specialized suppliers and buyers.

Question 5

​Equity and non-equity modes of entry into foreign markets are essentially the same.

Accepted Answer

A) True 
 B)False

Question 6

Which is NOT true of joint ventures?

Accepted Answer

A)  They are jointly owned by two or more parent companies. 
B)  They share risks with local partners. 
C)  They gain access to the local partner's knowledge about the host country. 
D)  They are politically less acceptable than wholly owned subsidiaries. 
A)  They are jointly owned by two or more parent companies. 
B)  They share risks with local partners. 
C)  They gain access to the local partner's knowledge about the host country. 
D)  They are politically less acceptable than wholly owned subsidiaries.

Question 7

​The liability of foreignness is:

Accepted Answer

A)  ​The inherent disadvantage foreign firms experience in host countries. 
B)  ​Related strictly to the formal institutions that govern the way business is done in a foreign country. 
C)  ​A challenge when it comes to resource supply but not to competitive advantage. 
D)  ​Irrelevant in the process of entering foreign markets. 
A)  ​The inherent disadvantage foreign firms experience in host countries. 
B)  ​Related strictly to the formal institutions that govern the way business is done in a foreign country. 
C)  ​A challenge when it comes to resource supply but not to competitive advantage. 
D)  ​Irrelevant in the process of entering foreign markets.

Question 8

Which of the following is not a regulatory risk?

Accepted Answer

A)  An obsolescing bargain. 
B)  Deals that have been struck by MNEs and host governments. 
C)  Nationalization. 
D)  Recent trends among host governments regarding their relationships with MNEs. 
A)  An obsolescing bargain. 
B)  Deals that have been struck by MNEs and host governments. 
C)  Nationalization. 
D)  Recent trends among host governments regarding their relationships with MNEs.

Question 9

Formal rather than informal "rules of the game" govern competition in foreign markets.

Accepted Answer

A) True 
 B)False

Question 10

Some foreignness is never an asset.

Accepted Answer

A) True 
 B)False

Question 11

​A firm that merely exports/imports with no FDI is usually not regarded as an MNE.

Accepted Answer

A) True 
 B)False

Question 12

MNEs are firms that are truly global.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following exemplify trade barriers?

Accepted Answer

A)  Tariffs. 
B)  Local content requirements. 
C)  Restrictions on certain entry modes. 
D)  All of the above 
A)  Tariffs. 
B)  Local content requirements. 
C)  Restrictions on certain entry modes. 
D)  All of the above

Question 14

​First-mover advantages always outweigh late-mover advantages.

Accepted Answer

A) True 
 B)False

Question 15

​Firms with a market-seeking strategy will locate primarily where the advantages include an abundance of innovative individuals,firms,and universities.

Accepted Answer

A) True 
 B)False

Question 16

​Customer discrimination against foreign firms has been eliminated in recent years.

Accepted Answer

A) True 
 B)False

Question 17

In regards to industry-based considerations,the higher the entry barriers,the more intensely firms will attempt to compete abroad.

Accepted Answer

A) True 
 B)False

Question 18

​Country-of-origin affect consistently confers a positive perception of foreign firms and products.

Accepted Answer

A) True 
 B)False

Question 19

Greenfield operations refer to:

Accepted Answer

A)  Wholly owned subsidiaries. 
B)  Turnkey projects. 
C)  R&D contracts. 
D)  Co-marketing. 
A)  Wholly owned subsidiaries. 
B)  Turnkey projects. 
C)  R&D contracts. 
D)  Co-marketing.

Question 20

​Non-equity modes of entry include joint ventures and wholly owned subsidiaries.

Accepted Answer

A) True 
 B)False

As firms expand into more countries,they should recognize that:

Under the Stage Model school of thought firms will enter culturally similar countries during their first stage of internationalization.

Small firms in a large domestic market are less likely to internationalize because of their relatively poor resource base and large size of their domestic market.

Which of the following is not a location-specific advantage?

Equity and non-equity modes of entry into foreign markets are essentially the same.

Which is NOT true of joint ventures?

The liability of foreignness is:

Which of the following is not a regulatory risk?

Formal rather than informal "rules of the game" govern competition in foreign markets.

Some foreignness is never an asset.

A firm that merely exports/imports with no FDI is usually not regarded as an MNE.

MNEs are firms that are truly global.

Which of the following exemplify trade barriers?

First-mover advantages always outweigh late-mover advantages.

Firms with a market-seeking strategy will locate primarily where the advantages include an abundance of innovative individuals,firms,and universities.

Customer discrimination against foreign firms has been eliminated in recent years.

In regards to industry-based considerations,the higher the entry barriers,the more intensely firms will attempt to compete abroad.

Country-of-origin affect consistently confers a positive perception of foreign firms and products.

Greenfield operations refer to:

Non-equity modes of entry include joint ventures and wholly owned subsidiaries.

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

As firms expand into more countries,they should recognize that:

Under the Stage Model school of thought firms will enter culturally similar countries during their first stage of internationalization.

​Small firms in a large domestic market are less likely to internationalize because of their relatively poor resource base and large size of their domestic market.

Which of the following is not a location-specific advantage?

​Equity and non-equity modes of entry into foreign markets are essentially the same.

Which is NOT true of joint ventures?

​The liability of foreignness is:

Which of the following is not a regulatory risk?

Formal rather than informal "rules of the game" govern competition in foreign markets.

Some foreignness is never an asset.

​A firm that merely exports/imports with no FDI is usually not regarded as an MNE.

MNEs are firms that are truly global.

Which of the following exemplify trade barriers?

​First-mover advantages always outweigh late-mover advantages.

​Firms with a market-seeking strategy will locate primarily where the advantages include an abundance of innovative individuals,firms,and universities.

​Customer discrimination against foreign firms has been eliminated in recent years.

In regards to industry-based considerations,the higher the entry barriers,the more intensely firms will attempt to compete abroad.

​Country-of-origin affect consistently confers a positive perception of foreign firms and products.

Greenfield operations refer to:

​Non-equity modes of entry include joint ventures and wholly owned subsidiaries.

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

Small firms in a large domestic market are less likely to internationalize because of their relatively poor resource base and large size of their domestic market.

Equity and non-equity modes of entry into foreign markets are essentially the same.

The liability of foreignness is:

A firm that merely exports/imports with no FDI is usually not regarded as an MNE.

First-mover advantages always outweigh late-mover advantages.

Firms with a market-seeking strategy will locate primarily where the advantages include an abundance of innovative individuals,firms,and universities.

Customer discrimination against foreign firms has been eliminated in recent years.

Country-of-origin affect consistently confers a positive perception of foreign firms and products.

Non-equity modes of entry include joint ventures and wholly owned subsidiaries.