Question 1

Which of the following is NOT a disadvantage of international acquisitions?

Accepted Answer

A)  They are very expensive and often require debt financing. 
B)  The acquiring firm has to deal with the regulatory requirements of a host country. 
C)  Merging the acquired and acquiring firm is difficult. 
D)  It is the slowest way to enter a new market. 
A)  They are very expensive and often require debt financing. 
B)  The acquiring firm has to deal with the regulatory requirements of a host country. 
C)  Merging the acquired and acquiring firm is difficult. 
D)  It is the slowest way to enter a new market.

Question 2

Most firms enter international markets sequentially, introducing their ____ first.

Accepted Answer

A)  most innovative products 
B)  largest and strongest lines of business 
C)  most generic products, which will be more likely to generate universal product demand, 
D)  products customized to the region 
A)  most innovative products 
B)  largest and strongest lines of business 
C)  most generic products, which will be more likely to generate universal product demand, 
D)  products customized to the region

Question 3

Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market.

Accepted Answer

A) True 
 B)False

Question 4

The benefits of expanding into international markets include each of the following opportunities EXCEPT

Accepted Answer

A)  increasing the size of the firm's potential markets. 
B)  economies of scale and learning. 
C)  location advantages. 
D)  favorable tax concessions and economic incentives by home-country governments. 
A)  increasing the size of the firm's potential markets. 
B)  economies of scale and learning. 
C)  location advantages. 
D)  favorable tax concessions and economic incentives by home-country governments.

Question 5

Identify and describe the major risks of international diversification.

Accepted Answer

International diversification carries mu

Question 6

A reason that firms use international strategies is to secure needed resources, especially minerals and energy.

Accepted Answer

A) True 
 B)False

Question 7

Because there are still several industrial and consumer markets in which only domestic firms compete, many firms do not have to be able to compete internationally.

Accepted Answer

A) True 
 B)False

Question 8

The choices that a firm has for entering the international market include all of the following EXCEPT

Accepted Answer

A)  exporting. 
B)  licensing. 
C)  leasing. 
D)  acquisition. 
A)  exporting. 
B)  licensing. 
C)  leasing. 
D)  acquisition.

Question 9

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Accepted Answer

A)  Factors of production 
B)  Demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure and rivalry 
A)  Factors of production 
B)  Demand conditions 
C)  Related and supporting industries 
D)  Firm strategy, structure and rivalry

Question 10

Which of the following is NOT a typical disadvantage of licensing?

Accepted Answer

A)  little control over the marketing of the products 
B)  licensees may develop a competitive product after the license expires 
C)  lower potential returns than the use of exporting or strategic alliances 
D)  incompatibility of the licensing partners 
A)  little control over the marketing of the products 
B)  licensees may develop a competitive product after the license expires 
C)  lower potential returns than the use of exporting or strategic alliances 
D)  incompatibility of the licensing partners

Question 11

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT a factor pressuring companies for local responsiveness?

Accepted Answer

A)  differences in employment laws 
B)  customization due to cultural differences 
C)  government pressure for firms to use local sources for procurement 
D)  availability of low labor costs 
A)  differences in employment laws 
B)  customization due to cultural differences 
C)  government pressure for firms to use local sources for procurement 
D)  availability of low labor costs

Question 13

The "liability of foreignness" means that many firms need to focus more on local adaptation or risk problems such as the Walt Disney Company faced opening its theme park in France.

Accepted Answer

A) True 
 B)False

Question 14

U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of

Accepted Answer

A)  increasing rejection of American culture across much of the world. 
B)  the sophistication of the international consumer because of the Internet. 
C)  consumer needs, political and legal structures, and social norms vary by country. 
D)  the increasing loss of economies of scale. 
A)  increasing rejection of American culture across much of the world. 
B)  the sophistication of the international consumer because of the Internet. 
C)  consumer needs, political and legal structures, and social norms vary by country. 
D)  the increasing loss of economies of scale.

Question 15

A transnational strategy is difficult to use because of its conflicting goals.

Accepted Answer

A) True 
 B)False

Question 16

_______________________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.

Accepted Answer

A)  transnational risk 
B)  regionalization 
C)  liability of foreignness 
D)  international risk 
A)  transnational risk 
B)  regionalization 
C)  liability of foreignness 
D)  international risk

Question 17

Which of the following is NOT an incentive for firms to become multinational?

Accepted Answer

A)  to gain access to consumers in emerging markets. 
B)  to gain easier access to raw materials. 
C)  to avoid high domestic taxation on corporate income. 
D)  opportunities to integrate operations on a global scale. 
A)  to gain access to consumers in emerging markets. 
B)  to gain easier access to raw materials. 
C)  to avoid high domestic taxation on corporate income. 
D)  opportunities to integrate operations on a global scale.

Question 18

Research has shown that, as international diversification increases, firms' returns decrease initially but then increase quickly as firms learn to manage international expansion.

Accepted Answer

A) True 
 B)False

Question 19

Establishing a wholly-owned subsidiary provides the quickest access to a new market.

Accepted Answer

A) True 
 B)False

Question 20

One reason why firms pursue international opportunities is to extend the product's life cycle.

Accepted Answer

A) True 
 B)False

Which of the following is NOT a disadvantage of international acquisitions?

Most firms enter international markets sequentially, introducing their ____ first.

Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market.

The benefits of expanding into international markets include each of the following opportunities EXCEPT

Identify and describe the major risks of international diversification.

A reason that firms use international strategies is to secure needed resources, especially minerals and energy.

Because there are still several industrial and consumer markets in which only domestic firms compete, many firms do not have to be able to compete internationally.

The choices that a firm has for entering the international market include all of the following EXCEPT

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Which of the following is NOT a typical disadvantage of licensing?

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

Which of the following is NOT a factor pressuring companies for local responsiveness?

The "liability of foreignness" means that many firms need to focus more on local adaptation or risk problems such as the Walt Disney Company faced opening its theme park in France.

U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of

A transnational strategy is difficult to use because of its conflicting goals.

_______________________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.

Which of the following is NOT an incentive for firms to become multinational?

Research has shown that, as international diversification increases, firms' returns decrease initially but then increase quickly as firms learn to manage international expansion.

Establishing a wholly-owned subsidiary provides the quickest access to a new market.

One reason why firms pursue international opportunities is to extend the product's life cycle.

Strategic Management and Competitiveness

The External Environment: Opportunities, Threats, Competition, and Competitor Analysis

The Internal Environment: Resources, Capabilities, Competencies, and Competitive Advantages

Business Level Strategy

Competitive Rivalry and Dynamics

Corporate Level Strategy

Strategic Acquisition and Restructuring

Cooperative Implications for Strategy

Corporate Governance and Ethics

Structure and Controls with Organizations

Leadership Implications for Strategy

Entrepreneurial Implications for Strategy

Filters

Exam 8: Global Strategy

Which of the following is NOT a disadvantage of international acquisitions?

Most firms enter international markets sequentially, introducing their ____ first.

Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market.

The benefits of expanding into international markets include each of the following opportunities EXCEPT

Identify and describe the major risks of international diversification.

A reason that firms use international strategies is to secure needed resources, especially minerals and energy.

Because there are still several industrial and consumer markets in which only domestic firms compete, many firms do not have to be able to compete internationally.

The choices that a firm has for entering the international market include all of the following EXCEPT

Japan, due to a lack of undeveloped land, would be an unusual choice of location for a U.S. cattle company to set up local grazing operations. This limiting factor would be identified in what part of Porter's determinants of national advantage?

Which of the following is NOT a typical disadvantage of licensing?

Both the size and the nature of a country's domestic demand for a particular industry's good or service are important in Porter's determinants of national advantage.

Which of the following is NOT a factor pressuring companies for local responsiveness?

The "liability of foreignness" means that many firms need to focus more on local adaptation or risk problems such as the Walt Disney Company faced opening its theme park in France.

U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness because of

A transnational strategy is difficult to use because of its conflicting goals.

_______________________ is the set of costs associated with unfamiliar operating environments; economic, administrative and cultural differences; and the challenges of coordination over distances.

Which of the following is NOT an incentive for firms to become multinational?

Research has shown that, as international diversification increases, firms' returns decrease initially but then increase quickly as firms learn to manage international expansion.

Establishing a wholly-owned subsidiary provides the quickest access to a new market.

One reason why firms pursue international opportunities is to extend the product's life cycle.

Strategic Management and Competitiveness

The External Environment: Opportunities, Threats, Competition, and Competitor Analysis

The Internal Environment: Resources, Capabilities, Competencies, and Competitive Advantages

Business Level Strategy

Competitive Rivalry and Dynamics

Corporate Level Strategy

Strategic Acquisition and Restructuring

Cooperative Implications for Strategy

Corporate Governance and Ethics

Structure and Controls with Organizations

Leadership Implications for Strategy

Entrepreneurial Implications for Strategy

Filters