Question 1

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.

Accepted Answer

A) True 
 B)False

Question 2

The U.S.and Australia have common language and culture and yet the true distance is great.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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?

Accepted Answer

A)  large pool of skilled workers 
B)  eroding cost advantage of Indian firms 
C)  rapidly improving communications infrastructure 
D)  large, growing market and sophisticated customers

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

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

Accepted Answer

A)  decreases, innovation 
B)  decreases, efficiency 
C)  increases, efficiency 
D)  increases, sales

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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.

Accepted Answer

A)  currency 
B)  economic 
C)  political 
D)  management

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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.

Accepted Answer

A)  widely differentiated 
B)  more expensive local 
C)  internationally differentiated 
D)  standardized

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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 14

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.

Accepted Answer

A) True 
 B)False

Question 15

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Accepted Answer

A)  Asia. 
B)  South America. 
C)  the United States. 
D)  Africa.

Question 16

Trading blocs and free trade zones promote the rise of international expansion.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A domestic corporation considering international expansion for the first time typically will follow which of these paths?

Accepted Answer

A)  It will start by implementing a wholly owned foreign subsidiary. 
B)  It will implement a low risk-low control strategy such as exporting. 
C)  It will license or franchise its operations 
D)  It will form a joint venture with a reputable foreign producer.

Question 19

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.

Accepted Answer

A) True 
 B)False

Question 20

Within a worldwide market,the most effective strategies are neither purely multidomestic nor purely global.

Accepted Answer

A) True 
 B)False

Exam 7: International Strategy: Creating Value in Global Markets

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.

The U.S.and Australia have common language and culture and yet the true distance is great.

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

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?

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

Related industries create the probability that new companies will enter the market.This competition and forces existing firms to improve ___.

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

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?

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

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.

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

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

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.

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Trading blocs and free trade zones promote the rise of international expansion.

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

A domestic corporation considering international expansion for the first time typically will follow which of these paths?

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.

Within a worldwide market,the most effective strategies are neither purely multidomestic nor purely global.