Exam 13: Country Evaluation and Selection

Carrefour has been more successful than Walmart in Europe, whereas Walmart has been more successful than Carrefour in the United States.What is the most likely reason for these results?

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

The more a company needs to alter its products and ways of doing business to be successful abroad, the more it should rely on a diversification strategy for entering foreign markets.

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

In developed countries, the percentage of the working-age population (using today's standards)is expected to rise by 2050.

A company's operations are most likely to be taken over by a host government when ________.

Sales potential is probably the most important variable in determining international location decisions because consumer demand exceeds supply.

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 ________.

When comparing economic and demographic variables among countries, one should consider that consumers in developing countries do not necessarily follow the same historical patterns as those in more developed countries.

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.

Instead of comparing different proposals involving foreign operations, companies often make decisions by looking at proposals one at a time.Which of the following is NOT a possible reason for this behavior?

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.

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

Why do companies engage in international harvesting or divestment?

Top executives at Jordan, a U.S.consulting firm, are debating whether or not to expand into a country with a great deal of violence by staffing mostly with U.S.personnel.A vice president argues that Jordan should forgo sending its employees there because of the high risk for them of kidnappings in the region.Which of the following statements best supports the vice president's position?

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

A manager needs to prepare a grid to compare countries for location of the firm's international operations.It would be most useful for the manager to ________.

Fidelity Manufacturing is considering expanding its operations into the Philippines.A manager at Fidelity has the task of predicting political risk in the Philippines.Which of the following approaches should the manager LEAST use to accomplish the task?

Which of the following is true about projected demographic changes up to the year 2050 that could affect future production and sales locations?

Labor cost advantages gained by moving into a country with low wages may be short-lived because ________.