Question 1

Which of the following describes the most typical order of entry into foreign markets?

Accepted Answer

A) franchising,licensing,exporting,joint venture,and wholly owned subsidiary 
B) exporting,franchising,licensing,joint venture,and wholly owned subsidiary 
C) licensing,exporting,franchising,joint venture,and wholly owned subsidiary 
D) exporting,licensing,franchising,joint venture,and wholly owned subsidiary

Question 2

A franchise generally expires after a few years,whereas a license is designed to last into perpetuity.

Accepted Answer

A) True 
 B)False

Question 3

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Accepted Answer

A) social 
B) multinational 
C) market 
D) democratic

Question 4

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the lowest country political risk?

Accepted Answer

A) Libya and Argentina 
B) Singapore and Hong Kong 
C) Norway and Canada 
D) China and Bahrain

Question 5

Which one of the following explains why so few firms are global?

Accepted Answer

A) Culture,language,and religion are similar between countries. 
B) Legal and political systems are similar between countries. 
C) Governments are increasing trade restrictions in general. 
D) Geographic distance is multiplied by distance in culture,language,religion,and legal and political systems.

Question 6

In the Porter diamond-of-national-advantage framework,which of the following factors does not affect competitiveness of a nation?

Accepted Answer

A) the position of the nation in factors of production necessary to compete in a given industry 
B) the presence or absence in the nation of internationally competitive supplier industries 
C) the conditions in the nation governing the nature of foreign rivalry 
D) the nature of home-market demand of the products or services of the industry

Question 7

Panasonic entered the market in China and found that it needed to balance global integration with local adaptation.It set up a Lifestyle Research Center in China to interpret data on customer wants and needs.This is an example of a company using ________ strategy.

Accepted Answer

A) an international 
B) a multidomestic 
C) a single country 
D) a transnational

Question 8

To meet market needs companies sometimes change product names so that the name in the local language is culturally meaningful.This is an example of a company using ________ strategy.

Accepted Answer

A) an international 
B) a multidomestic 
C) a single country 
D) a transnational

Question 9

Which of the following is a reason for the rise in regional expansion?

Accepted Answer

A) increase in the number of trading blocs and free trade zones 
B) decrease in the number of trading blocs and free trade zones 
C) increasing national trade restrictions 
D) increasing local taxes and tariffs

Question 10

A ________ is a business in which a multinational company owns 100 percent of the stock.

Accepted Answer

A) wholly owned subsidiary 
B) strategic alliance 
C) joint venture 
D) franchising operation

Question 11

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Accepted Answer

A) large pool of skilled workers 
B) large,growing market and sophisticated customers 
C) tax and antitrust legislation that protects the dominant players in the industry 
D) large network of public and private educational institutions

Question 12

Which one of the following is not a Western hemisphere trade bloc?

Accepted Answer

A) NAFTA 
B) MERCOSUR 
C) ASEAN 
D) Latin American Integration Association

Question 13

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from

Accepted Answer

A) higher prices in their domestic markets. 
B) reducing their exposure to currency risks. 
C) economies of scale. 
D) optimizing the location for many activities in their value chain.

Question 14

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Accepted Answer

A) local;local 
B) local;global 
C) global;local 
D) global;global

Question 15

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Accepted Answer

A) South Korea 
B) China 
C) Colombia 
D) Argentina

Question 16

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

Accepted Answer

A) true distance is smaller between the United States and Canada. 
B) all three countries share the same legal system. 
C) there are few immigration problems with Mexico. 
D) Americans prefer Canadian food to Mexican food.

Question 17

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?

Accepted Answer

A) U.S.demand conditions 
B) factor endowments 
C) domestic rivalry 
D) domestic demand conditions

Question 18

Arbitrage opportunities are simple trading opportunities and therefore account for little of the success Walmart experiences.

Accepted Answer

A) True 
 B)False

Question 19

________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

Accepted Answer

A) Offshoring 
B) A global strategy 
C) Outsourcing 
D) A transnational strategy

Question 20

Green tea Oreos in China,chocolate and peanut butter Oreos in Indonesia,and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.

Accepted Answer

A) an international 
B) a multidomestic 
C) a single country 
D) a transnational

Exam 7: International Strategy: Creating Value in Global Markets

Which of the following describes the most typical order of entry into foreign markets?

A franchise generally expires after a few years,whereas a license is designed to last into perpetuity.

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the lowest country political risk?

Which one of the following explains why so few firms are global?

In the Porter diamond-of-national-advantage framework,which of the following factors does not affect competitiveness of a nation?

Panasonic entered the market in China and found that it needed to balance global integration with local adaptation.It set up a Lifestyle Research Center in China to interpret data on customer wants and needs.This is an example of a company using ________ strategy.

To meet market needs companies sometimes change product names so that the name in the local language is culturally meaningful.This is an example of a company using ________ strategy.

Which of the following is a reason for the rise in regional expansion?

A ________ is a business in which a multinational company owns 100 percent of the stock.

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Which one of the following is not a Western hemisphere trade bloc?

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from

Multinational firms are constantly faced with the decision of choosing between adaptation and integration.

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

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?

Arbitrage opportunities are simple trading opportunities and therefore account for little of the success Walmart experiences.

________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

Green tea Oreos in China,chocolate and peanut butter Oreos in Indonesia,and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.