Exam 9: International Strategy

Granting another business the permission to use or sell a firm's product, technology, or process is called ___.

Which of the following statements best describes global integration?

Jade Inc., an automobile company, manages the costs of localization by mass producing standard core components such as the engine. However, it makes these components in such a way that they can be adapted to modified external components that are customized to specific local markets. This ensures a certain extent of economies of scale. Which of the following is exemplified in this case?

Explain why firms choose to compete in international markets.

Nina, a marketing student, studies how people from different countries accept ambiguity or follow rules and laws. When she focuses on this specific trait while studying the distance between a domestic and foreign market, she is likely to be focusing on the markets' __________.

Blue Corp., a car manufacturing company, reaches its five-year goal of becoming market leader in the domestic market. Upon reaching saturation in the local market, it decides to expand its market globally in order to increase its profits. Which of the following is likely to be the primary reason for Blue to enter the global market?

Neferent Inc., a finance company, incorporates itself in the Notre Islands because of low corporate tax rates there. In this case, the strategy adopted by Neferent is to gain a(n)__________.

Vactin Motors, an automobile company, is a well-recognized brand. It does not have the capital and capabilities to set up manufacturing units abroad, although it is keen to have its products made in the foreign market. It decides to have the products produced and sold under its brand name. In this case, which of the following modes of international market entry should be adopted by Vactin?

Hats Corp., a firm headquartered in Boston, enters India through a wholly owned subsidiary. It has already franchised a few units to Nepal and China. Which of the following is likely to be true in this case?

Which of the following is true of a firm's choice of entry mode?

The stages a product or service goes through during its lifespan refers to a(n)___.

The industries most affected by economic distance are those for which ________.

Two marketing students, Fiona and Sayid, discuss the strategies of Star Seven Inc., a leading firm in the United States. Fiona believes that Star Seven entered a foreign market for the sake of efficiency, while Sayid argues that it entered for the purpose of expanding knowledge. Which of the following weakens Fiona's argument?

Nate, the CEO of Venus Corp., decides to make some changes to the strategies adopted to operate in global market. Although he remains with the multidomestic strategy, he decides to manage the variations and the costs incurred through it by allowing a local firm to take up a franchise. This ensures that Venus does not have to work on adapting the product to the local needs. Which strategy has Nate adopted to manage the variations?

Neon Inc. considers two foreign markets for expansion. The first market has lesser taxes compared to the second along with more lenient trade regulations. Thus, Neon chooses the first market despite it being more distinct in terms of language and tradition. By choosing the first market, Neon exhibits a(n)__________.

Which of the following statements is true of alliances as a means of entering international markets?

Firms choose to compete in international markets to ________.

Which of the following is a disadvantage of exporting as a mode for entering a foreign market?

Which of the following is true of costs in terms of how firms compete internationally?

Kitsch Along Inc., a cloth manufacturer, raises funds in a country where interest rates are lower than the United States. In this case, the type of arbitrage strategy adopted by the company is primarily __________.