Exam 13: Country Evaluation and Selection

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

Headquarters management often feels that people within an established operation are the best judge of the operation's investment needs.

Grids are a useful method of comparing countries for international business expansion because they ________.

We now have technology to allow people to communicate globally without traveling as much.Leading researchers on urbanization and planning suggest that the most likely consequence of this is ________.

Compare the advantages of locating foreign operations to avoid where competitors have gone versus locating where competitors are.

The concept of liquidity preference in international operations refers to ________.

Which of the following BEST explains why foreign subsidiary managers are often reluctant to propose divestments in the countries where they are working?

Which of the following best explains why U.S.firms typically place earlier and greater emphasis on expansion into Canada and the United Kingdom?

What is scanning? What opportunities and risks are most relevant to scanning?

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

The crowding of a foreign market to prevent competitors' advantages is known as ________.

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

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

Comparability of economic information among countries is hampered by countries' use of different definitions for similar terms.

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

In a diversification strategy for international expansion, a company would move ________.

Risks to companies from natural disasters and communicable diseases are ________.

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

Why do most companies examine expansion proposals one at a time rather than comparing various expansion proposals? Do you think this is effective? Why or why not?

Profit figures for individual country operations may obscure the real impact those operations have on total global performance.