Exam 7: International Strategy: Creating Value in Global Markets

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Typically,the least risky method of entry into a foreign market is through the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control.

(True/False)
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The U.S.and Australia have common language and culture and yet the true distance is great.

(True/False)
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When considering the export decision,firms should not partner with local distributors because many foreign markets are nationally regulated.

(True/False)
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In reviewing the Indian Software industry and the diamond of national advantage,which of the following is a growing detractor to the national competitive advantage in this industry?

(Multiple Choice)
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Which one of the following explains why so few firms are global?

(Multiple Choice)
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Related industries create the probability that new companies will enter the market.This ________ competition and forces existing firms to improve ___________.

(Multiple Choice)
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Multinational firms following a transnational strategy strive to optimize the trade-offs associated with efficiency,local adaptation,and learning.

(True/False)
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In reviewing the Indian Software industry and the diamond of national advantage,which of the following is a relatively weak set of factors in the national competitive advantage in this industry?

(Multiple Choice)
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Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008.Just one year later,Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ,which was then experiencing a significant slide in sales.This is an example of _____________ risk.

(Multiple Choice)
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Globalization is a term used to mean the growing dissimilarity of laws,rules,norms,values and ideas across countries.

(True/False)
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Firms following a global strategy strive to offer __________ products and services as well as locate manufacturing,Research and Development,and marketing activities in a limited number of locations.

(Multiple Choice)
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Emerging markets are growing slower than developed markets,thus shifting the structure of the global economy.

(True/False)
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Which of the following is a reason for the rise in regional expansion?

(Multiple Choice)
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Firms can lessen political instability and adverse government actions risks by: competing in a range of geographic markets,developing stakeholder coalitions,cultivating relationships with key influences,and including key public-private stakeholders in their boards.

(True/False)
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Shared Spanish colonialism is one reason that explains regionalism tendencies in

(Multiple Choice)
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Trading blocs and free trade zones promote the rise of international expansion.

(True/False)
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Typically,intense rivalry in domestic markets does not force firms to look outside their national boundaries for new markets.

(True/False)
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A domestic corporation considering international expansion for the first time typically will follow which of these paths?

(Multiple Choice)
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A U.S.firm expands into China and Canada at exactly the same sales volume.The physical distance is the only factor that affects the true distance between the countries.

(True/False)
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Within a worldwide market,the most effective strategies are neither purely multidomestic nor purely global.

(True/False)
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