Question 1

Which of the following LEAST explains why inaccuracies appear in published information about countries?

Accepted Answer

A)  inclusion of both legal and illegal economic activities 
B)  inclusion of both market and non-market economic activities 
C)  poor methodology used in data collection 
D)  use of different translation software 
A)  inclusion of both legal and illegal economic activities 
B)  inclusion of both market and non-market economic activities 
C)  poor methodology used in data collection 
D)  use of different translation software C

Question 2

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

Accepted Answer

Market research and business consulting companies conduct studies for a fee in most countries.
Some research organizations prepare fairly specific studies that they sell to any interested company at costs much lower than for individualized studies.Most companies that provide services to international clients publish reports.These reports usually are geared toward either the conduct of business in a given area or some specific subject of general interest,such as tax or trademark legislation.Governments and their agencies are another source of information.Different countries' statistical reports vary in subject matter,quantity,and quality.Numerous organizations and agencies are supported by more than one country.These include the United Nations,the World Trade Organization,the International Monetary Fund,the Organization for Economic Cooperation and Development,and the European Union.All of these organizations have large research staffs that compile basic statistics as well as prepare reports and recommendations concerning common trends and problems.Trade associations connected to various product lines collect,evaluate,and disseminate a wide variety of data dealing with technical and competitive factors in their industries.A number of companies have information-retrieval services that maintain databases from hundreds of different sources.For a fee,or sometimes for free at public libraries,a company can obtain access to such computerized data and arrange for an immediate printout of studies of interest.
Two common tools for analysis are grids and matrices.A company may use a grid to compare countries on whatever factors it deems important.The grid technique is useful even when a company does not compare countries because it can set a minimum score necessary for either investing additional resources or committing further funds to a more detailed feasibility study.An opportunity-risk matrix is important as a reflection of the placement of a country in comparison to other countries.The companies must determine which factors are good indicators of its risk and opportunity and weigh them to reflect their importance.

Question 3

Elison Enterprises is planning international geographic expansion. A manager at Elison has been given the task of scanning for locations primarily to _______.

Accepted Answer

A)  reduce the number of options available to a manageable number for further detailed analysis 
B)  assure the compatibility between the mode of corporate operation and the country 
C)  assure that all countries within a region have similar investment climates 
D)  decide whether to use a concentration or a diversification strategy 
A)  reduce the number of options available to a manageable number for further detailed analysis 
B)  assure the compatibility between the mode of corporate operation and the country 
C)  assure that all countries within a region have similar investment climates 
D)  decide whether to use a concentration or a diversification strategy A

Question 4

Companies are usually willing to accept a lower rate of return on their investments in countries where they can more easily sell those investments and convert the proceeds at a favorable rate.

Accepted Answer

A) True 
 B)False

Question 5

Demographers project that the share (percentage of population)of what we now consider the working-age population in developed countries will decrease up to the year 2050. Which of the following is the most likely result of this trend?

Accepted Answer

A)  an increase in foreign exchange among trading blocs 
B)  an increase in FDI provided by developed economies 
C)  a higher percentage in per capita GDP in today's developing economies than in today's developed economies 
D)  a higher percentage in per capita GDP in today's developed economies than in today's developing economies 
A)  an increase in foreign exchange among trading blocs 
B)  an increase in FDI provided by developed economies 
C)  a higher percentage in per capita GDP in today's developing economies than in today's developed economies 
D)  a higher percentage in per capita GDP in today's developed economies than in today's developing economies

Question 6

Which of the following describes a company's strategy of moving first to those countries where local competitors are most likely to catch up to the firm's innovative advantage?

Accepted Answer

A)  lead country strategy 
B)  imitation lag strategy 
C)  oligopolistic reaction strategy 
D)  liability of foreignness strategy 
A)  lead country strategy 
B)  imitation lag strategy 
C)  oligopolistic reaction strategy 
D)  liability of foreignness strategy

Question 7

The ability to compare production costs among countries in an effort to determine where to locate production is significantly hampered by all of the following EXCEPT ________.

Accepted Answer

A)  the number of ways the same product can be made 
B)  restrictions on the international flow of data 
C)  the ways that laws may be enforced 
D)  future costs from exchange rate changes 
A)  the number of ways the same product can be made 
B)  restrictions on the international flow of data 
C)  the ways that laws may be enforced 
D)  future costs from exchange rate changes

Question 8

In a short essay,discuss liquidity preference as it relates to monetary risk.

Accepted Answer

If a company's expansion occurs through

Question 9

Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Accepted Answer

A)  These business environments allowed Burger King to take advantage of economies of scale. 
B)  These countries are close to a Burger King's headquarters. 
C)  These countries offered greater mobility of funds than countries in the European Union. 
D)  Unlike the BRIC countries, these business environments did not require escalation of commitment. 
A)  These business environments allowed Burger King to take advantage of economies of scale. 
B)  These countries are close to a Burger King's headquarters. 
C)  These countries offered greater mobility of funds than countries in the European Union. 
D)  Unlike the BRIC countries, these business environments did not require escalation of commitment.

Question 11

The decision-making process for a company's reinvestment choices is often different from those for new investment choices because ________.

Accepted Answer

A)  internal rate of return and other financial measurement criteria are more difficult to compile and analyze on existing operations, given currency translation distortions 
B)  failure to support an existing investment may jeopardize the firm's operations and competitiveness in that country 
C)  most of the net value of foreign investment comes from new international capital transfers rather than from reinvestment of earnings abroad 
D)  corporate management feels that country managers are best able to make divestment decisions 
A)  internal rate of return and other financial measurement criteria are more difficult to compile and analyze on existing operations, given currency translation distortions 
B)  failure to support an existing investment may jeopardize the firm's operations and competitiveness in that country 
C)  most of the net value of foreign investment comes from new international capital transfers rather than from reinvestment of earnings abroad 
D)  corporate management feels that country managers are best able to make divestment decisions

Question 12

In a concentration strategy for international expansion,a company goes first to one or a few countries and builds up fast there before going to other countries.

Accepted Answer

A) True 
 B)False

Question 13

U.S. companies generally put earlier and more emphasis on countries where they perceive it's easier to operate.

Accepted Answer

A) True 
 B)False

Question 14

Because many regional trading groups prohibit companies from producing in more than one member country,companies need to understand how to evaluate international geographic alternatives.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following reasons most compels companies to make location decisions on one international opportunity at a time rather than comparing among two or more?

Accepted Answer

A)  The lack of comparability in data among countries renders comparison unfeasible. 
B)  The information on some countries is so unreliable that companies must deal with these countries separately. 
C)  Decisions are made by teams, and it is usually not feasible to give so many people time away from their usual duties to examine multiple proposals. 
D)  If an important customer develops opportunities in a foreign country, a company may have little alternative except to follow that customer's lead. 
A)  The lack of comparability in data among countries renders comparison unfeasible. 
B)  The information on some countries is so unreliable that companies must deal with these countries separately. 
C)  Decisions are made by teams, and it is usually not feasible to give so many people time away from their usual duties to examine multiple proposals. 
D)  If an important customer develops opportunities in a foreign country, a company may have little alternative except to follow that customer's lead.

Question 16

Companies are more likely to gain advantages by locating near competitors for all the following reasons EXCEPT to ________.

Accepted Answer

A)  take advantage of competitors' research to pick an ideal location 
B)  attract multiple suppliers and personnel with specialized skills 
C)  agree with competitors on production limitations 
D)  attract buyers who want to compare suppliers 
A)  take advantage of competitors' research to pick an ideal location 
B)  attract multiple suppliers and personnel with specialized skills 
C)  agree with competitors on production limitations 
D)  attract buyers who want to compare suppliers

Question 17

Committing resources to one country usually means forgoing or delaying projects in others.

Accepted Answer

A) True 
 B)False

Question 18

In a short essay,compare the strategies of diversification versus concentration and provide examples of situations in which each would be used.

Accepted Answer

Ultimately,a company may gain a sizable

Question 19

Unlike grids,matrices do not require managers to determine weights for factors that indicate risk.

Accepted Answer

A) True 
 B)False

Question 20

Published government data is most often inaccurate because of translation errors from other countries' languages.

Accepted Answer

A) True 
 B)False

Which of the following LEAST explains why inaccuracies appear in published information about countries?

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

Elison Enterprises is planning international geographic expansion. A manager at Elison has been given the task of scanning for locations primarily to _______.

Companies are usually willing to accept a lower rate of return on their investments in countries where they can more easily sell those investments and convert the proceeds at a favorable rate.

Demographers project that the share (percentage of population)of what we now consider the working-age population in developed countries will decrease up to the year 2050. Which of the following is the most likely result of this trend?

Which of the following describes a company's strategy of moving first to those countries where local competitors are most likely to catch up to the firm's innovative advantage?

The ability to compare production costs among countries in an effort to determine where to locate production is significantly hampered by all of the following EXCEPT ________.

In a short essay,discuss liquidity preference as it relates to monetary risk.

Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.

Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

The decision-making process for a company's reinvestment choices is often different from those for new investment choices because ________.

In a concentration strategy for international expansion,a company goes first to one or a few countries and builds up fast there before going to other countries.

U.S. companies generally put earlier and more emphasis on countries where they perceive it's easier to operate.

Because many regional trading groups prohibit companies from producing in more than one member country,companies need to understand how to evaluate international geographic alternatives.

Which of the following reasons most compels companies to make location decisions on one international opportunity at a time rather than comparing among two or more?

Companies are more likely to gain advantages by locating near competitors for all the following reasons EXCEPT to ________.

Committing resources to one country usually means forgoing or delaying projects in others.

In a short essay,compare the strategies of diversification versus concentration and provide examples of situations in which each would be used.

Unlike grids,matrices do not require managers to determine weights for factors that indicate risk.

Published government data is most often inaccurate because of translation errors from other countries' languages.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 12: Country Evaluation and Selection

Which of the following LEAST explains why inaccuracies appear in published information about countries?

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

Elison Enterprises is planning international geographic expansion. A manager at Elison has been given the task of scanning for locations primarily to _______.

Companies are usually willing to accept a lower rate of return on their investments in countries where they can more easily sell those investments and convert the proceeds at a favorable rate.

Demographers project that the share (percentage of population)of what we now consider the working-age population in developed countries will decrease up to the year 2050. Which of the following is the most likely result of this trend?

Which of the following describes a company's strategy of moving first to those countries where local competitors are most likely to catch up to the firm's innovative advantage?

The ability to compare production costs among countries in an effort to determine where to locate production is significantly hampered by all of the following EXCEPT ________.

In a short essay,discuss liquidity preference as it relates to monetary risk.

Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.

Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

The decision-making process for a company's reinvestment choices is often different from those for new investment choices because ________.

In a concentration strategy for international expansion,a company goes first to one or a few countries and builds up fast there before going to other countries.

U.S. companies generally put earlier and more emphasis on countries where they perceive it's easier to operate.

Because many regional trading groups prohibit companies from producing in more than one member country,companies need to understand how to evaluate international geographic alternatives.

Which of the following reasons most compels companies to make location decisions on one international opportunity at a time rather than comparing among two or more?

Companies are more likely to gain advantages by locating near competitors for all the following reasons EXCEPT to ________.

Committing resources to one country usually means forgoing or delaying projects in others.

In a short essay,compare the strategies of diversification versus concentration and provide examples of situations in which each would be used.

Unlike grids,matrices do not require managers to determine weights for factors that indicate risk.

Published government data is most often inaccurate because of translation errors from other countries' languages.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters