Exam 12: Country Evaluation and Selection

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Which of the following most accurately compares the techniques of scanning versus detailed analysis of countries?

(Multiple Choice)
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Risks to companies from natural disasters and communicable diseases are ________.

(Multiple Choice)
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Sales expansion is probably the most important variable in determining international location decisions. This statement is most likely based on the assumption that ________.

(Multiple Choice)
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Governments that conduct takeovers of foreign companies rarely make formal declarations of their intent to take over in advance of the action.

(True/False)
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Instead of comparing different proposals involving foreign operations,companies often make decisions by looking at proposals one at a time. All of the following are reasons for this behavior EXCEPT which one?

(Multiple Choice)
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Although capital intensity is growing in most industries,labor compensation remains a significant cost for most companies.

(True/False)
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Liability of foreignness refers to the situation in which a government has more stringent legal operating regulations on foreigners and foreign companies than on its own citizens and companies.

(True/False)
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Which of the following statements is NOT true about risk as it affects companies' choice of locations for foreign operations?

(Multiple Choice)
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Losses to companies from natural disasters are much less risky than losses from operating in violent areas.

(True/False)
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In a short essay,discuss why simply examining a country's per capita GDP and its population doesn't necessarily lead to a good estimate for potential demand.

(Essay)
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The major use of the matrix as a tool in international location strategy is to ________.

(Multiple Choice)
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When income inequality is high in a specific country,the per capita GDP figures are more meaningful.

(True/False)
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Grids are a useful method of comparing countries for international business expansion because they ________.

(Multiple Choice)
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In which of the following situations would tax rate differences among countries be most important for deciding where to place an investment?

(Multiple Choice)
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An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

(True/False)
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A go-no-go decision for foreign expansion means that management reviews existing information and decides whether more information is needed.

(True/False)
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A company can best benefit from a first-mover advantage by moving into a small country,before entering a much larger country.

(True/False)
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Which of the following best explains Blockbuster's failed expansion into Germany?

(Multiple Choice)
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Which of the following is NOT true about the harvesting or divestment of foreign operations?

(Multiple Choice)
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The origin of investment proposals differs from the origin of divestment proposals in that the divestment proposals are more likely to come from ________.

(Multiple Choice)
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