Question 1

Which of the following BEST describes the purpose of using of an opportunity-risk matrix for comparing countries?

Accepted Answer

A) narrow alternatives so decision makers can make a detailed analysis of the strongest candidates 
B) eliminate countries that have specific unacceptable conditions 
C) determine whether to use a concentration versus diversification strategy for international expansion 
D) estimate where competitors are most likely to globalize 
A) narrow alternatives so decision makers can make a detailed analysis of the strongest candidates 
B) eliminate countries that have specific unacceptable conditions 
C) determine whether to use a concentration versus diversification strategy for international expansion 
D) estimate where competitors are most likely to globalize

Question 2

Demographers project that the share (percentage of population)of what we now consider the working-age population in developed countries will decrease up to the year 2050.Which of the following is the most likely result of this trend?

Accepted Answer

A) an increase in foreign exchange among trading blocs 
B) an increase in FDI provided by developed economies 
C) a higher percentage in per capita GDP in today's developing economies than in today's developed economies 
D) a higher percentage in per capita GDP in today's developed economies than in today's developing economies 
A) an increase in foreign exchange among trading blocs 
B) an increase in FDI provided by developed economies 
C) a higher percentage in per capita GDP in today's developing economies than in today's developed economies 
D) a higher percentage in per capita GDP in today's developed economies than in today's developing economies

Question 3

When examining economic and demographic variables to compare countries' sales potential for your product, which the following should you NOT consider?

Accepted Answer

A) Countries may depend heavily on the import of raw materials. 
B) Consumers in some countries may more conveniently substitute certain products than consumers in some other countries. 
C) Consumers in developing countries may leapfrog technologies by first purchasing the latest products. 
D) Trading blocs may enhance sales potential above what is indicated in individual country figures. 
A) Countries may depend heavily on the import of raw materials. 
B) Consumers in some countries may more conveniently substitute certain products than consumers in some other countries. 
C) Consumers in developing countries may leapfrog technologies by first purchasing the latest products. 
D) Trading blocs may enhance sales potential above what is indicated in individual country figures.

Question 4

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

Accepted Answer

Market research and business consulting

Question 5

Escalation of commitment is best described as the ________.

Accepted Answer

A) strategy of first entering a country on a small scale 
B) process of entering a country because "everyone else is going there" 
C) expectation of a higher return in more politically risky environments 
D) increased likelihood of investing in a country because of having spent considerable time and money in examining it 
A) strategy of first entering a country on a small scale 
B) process of entering a country because "everyone else is going there" 
C) expectation of a higher return in more politically risky environments 
D) increased likelihood of investing in a country because of having spent considerable time and money in examining it

Question 6

An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

Accepted Answer

A) True 
 B)False

Question 7

A company should probably use a concentration strategy for international expansion when there are ________.

Accepted Answer

A) high needs for product adaptation and low growth in each market 
B) short competitive lead times and low spillover effects 
C) high growth rate and long competitive lead times 
D) low sales stability and short competitive lead times 
A) high needs for product adaptation and low growth in each market 
B) short competitive lead times and low spillover effects 
C) high growth rate and long competitive lead times 
D) low sales stability and short competitive lead times

Question 8

Which of the following is the LEAST likely reason that inaccuracies appear in published information about countries?

Accepted Answer

A) inclusion of both legal and illegal economic activities 
B) inclusion of both market and non-market economic activities 
C) poor methodology used in data collection 
D) use of different translation software 
A) inclusion of both legal and illegal economic activities 
B) inclusion of both market and non-market economic activities 
C) poor methodology used in data collection 
D) use of different translation software

Question 9

Which of the following BEST explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Accepted Answer

A) These business environments allowed Burger King to take advantage of economies of scale. 
B) These countries are close to a Burger King's headquarters. 
C) These countries offered greater mobility of funds than countries in the European Union. 
D) Unlike the BRIC countries, these business environments did not require escalation of commitment. 
A) These business environments allowed Burger King to take advantage of economies of scale. 
B) These countries are close to a Burger King's headquarters. 
C) These countries offered greater mobility of funds than countries in the European Union. 
D) Unlike the BRIC countries, these business environments did not require escalation of commitment.

Question 10

Which of the following is NOT true about the harvesting or divestment of foreign operations?

Accepted Answer

A) One of the motives is to use resources where the performance prospects are better. 
B) Companies can harvest or divest by selling existing facilities. 
C) Closing a facility can be difficult because of governmental performance contracts. 
D) Companies have tended to divest too soon, rather than working to improve performance. 
A) One of the motives is to use resources where the performance prospects are better. 
B) Companies can harvest or divest by selling existing facilities. 
C) Closing a facility can be difficult because of governmental performance contracts. 
D) Companies have tended to divest too soon, rather than working to improve performance.

Question 11

When planning international geographic expansion, decision makers use scanning to reduce the number of options available to a manageable number for further detailed analysis.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following reasons most compels companies to make location decisions on one international opportunity at a time rather than comparing among two or more?

Accepted Answer

A) The lack of comparability in data among countries renders comparison unfeasible. 
B) The information on some countries is so unreliable that companies must deal with these countries separately. 
C) Decisions are made by teams, and it is usually not feasible to give so many people time away from their usual duties to examine multiple proposals. 
D) If an important customer develops opportunities in a foreign country, a company may have little alternative except to follow that customer's lead. 
A) The lack of comparability in data among countries renders comparison unfeasible. 
B) The information on some countries is so unreliable that companies must deal with these countries separately. 
C) Decisions are made by teams, and it is usually not feasible to give so many people time away from their usual duties to examine multiple proposals. 
D) If an important customer develops opportunities in a foreign country, a company may have little alternative except to follow that customer's lead.

Question 13

What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions?

Accepted Answer

If a company develops a product that con

Question 14

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations.Which of the following BEST describes how the manager should handle this task?

Accepted Answer

A) conduct extensive research, regardless of the expense, in order to avoid costly mistakes 
B) compare the costs of data collection with the probable payoff it will generate for the firm 
C) continue data gathering until all data have been collected, regardless of how long this takes 
D) focus all data collection on governmental resources because they have the highest reliability 
A) conduct extensive research, regardless of the expense, in order to avoid costly mistakes 
B) compare the costs of data collection with the probable payoff it will generate for the firm 
C) continue data gathering until all data have been collected, regardless of how long this takes 
D) focus all data collection on governmental resources because they have the highest reliability

Question 15

International managers most likely need to understand how to evaluate international geographic alternatives because ________.

Accepted Answer

A) they usually have a surplus of resources and need to take advantage of all opportunities 
B) many regional trading groups prohibit companies from outside of the trading group from manufacturing in more than one member country 
C) the commitment of resources to one locale may require forgoing projects in other locales 
D) decreased worldwide transportation costs and increased trade liberalization now allow companies to serve worldwide markets from a single production location 
A) they usually have a surplus of resources and need to take advantage of all opportunities 
B) many regional trading groups prohibit companies from outside of the trading group from manufacturing in more than one member country 
C) the commitment of resources to one locale may require forgoing projects in other locales 
D) decreased worldwide transportation costs and increased trade liberalization now allow companies to serve worldwide markets from a single production location

Question 16

Comparing countries in international business is LEAST useful for determining the ________.

Accepted Answer

A) best location for sales and production 
B) sequence of entering different countries 
C) amount of resources to allocate in each country 
D) selection of which managers to send to which countries 
A) best location for sales and production 
B) sequence of entering different countries 
C) amount of resources to allocate in each country 
D) selection of which managers to send to which countries

Question 17

Executives at Wilson Enterprises need to determine how to leverage and improve the firm's existing competencies on a global basis.What are the two most basic questions that they must answer?

Accepted Answer

A) Which markets should we serve and where should production be located to serve those markets? 
B) What are the short-term competitive advantages of the project and what is the return on investment? 
C) What is the total investment required and what are the managerial resources needed to supervise the investment? 
D) What is the availability of land and what is the cost of labor? 
A) Which markets should we serve and where should production be located to serve those markets? 
B) What are the short-term competitive advantages of the project and what is the return on investment? 
C) What is the total investment required and what are the managerial resources needed to supervise the investment? 
D) What is the availability of land and what is the cost of labor?

Question 18

What problems are common with the published data available about different countries?

Accepted Answer

For the most part, incomplete or inaccur

Question 19

Dawson Manufacturing produces and sells DVD players and is planning to expand sales internationally.Dawson has narrowed down the list of potential countries to India and Guatemala.A Dawson manager has the task of obtaining data regarding the number of DVD players sold annually in India and Guatemala.If unable to locate this information, she might most likely estimate the sales potential of these two countries by ________.

Accepted Answer

A) determining average wages 
B) calculating future inflation rates 
C) reviewing the countries' dependence on steel imports 
D) examining the sales history of flat-screen televisions 
A) determining average wages 
B) calculating future inflation rates 
C) reviewing the countries' dependence on steel imports 
D) examining the sales history of flat-screen televisions

Question 20

U.S.companies generally put earlier and more emphasis on countries in which they perceive it is easier to operate.

Accepted Answer

A) True 
 B)False

Which of the following BEST describes the purpose of using of an opportunity-risk matrix for comparing countries?

Demographers project that the share (percentage of population)of what we now consider the working-age population in developed countries will decrease up to the year 2050.Which of the following is the most likely result of this trend?

When examining economic and demographic variables to compare countries' sales potential for your product, which the following should you NOT consider?

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

Escalation of commitment is best described as the ________.

An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

A company should probably use a concentration strategy for international expansion when there are ________.

Which of the following is the LEAST likely reason that inaccuracies appear in published information about countries?

Which of the following BEST explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Which of the following is NOT true about the harvesting or divestment of foreign operations?

When planning international geographic expansion, decision makers use scanning to reduce the number of options available to a manageable number for further detailed analysis.

Which of the following reasons most compels companies to make location decisions on one international opportunity at a time rather than comparing among two or more?

What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions?

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations.Which of the following BEST describes how the manager should handle this task?

International managers most likely need to understand how to evaluate international geographic alternatives because ________.

Comparing countries in international business is LEAST useful for determining the ________.

Executives at Wilson Enterprises need to determine how to leverage and improve the firm's existing competencies on a global basis.What are the two most basic questions that they must answer?

What problems are common with the published data available about different countries?

U.S.companies generally put earlier and more emphasis on countries in which they perceive it is easier to operate.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 13: Country Evaluation and Selection

Which of the following BEST describes the purpose of using of an opportunity-risk matrix for comparing countries?

Demographers project that the share (percentage of population)of what we now consider the working-age population in developed countries will decrease up to the year 2050.Which of the following is the most likely result of this trend?

When examining economic and demographic variables to compare countries' sales potential for your product, which the following should you NOT consider?

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

Escalation of commitment is best described as the ________.

An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

A company should probably use a concentration strategy for international expansion when there are ________.

Which of the following is the LEAST likely reason that inaccuracies appear in published information about countries?

Which of the following BEST explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Which of the following is NOT true about the harvesting or divestment of foreign operations?

When planning international geographic expansion, decision makers use scanning to reduce the number of options available to a manageable number for further detailed analysis.

Which of the following reasons most compels companies to make location decisions on one international opportunity at a time rather than comparing among two or more?

What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions?

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations.Which of the following BEST describes how the manager should handle this task?

International managers most likely need to understand how to evaluate international geographic alternatives because ________.

Comparing countries in international business is LEAST useful for determining the ________.

Executives at Wilson Enterprises need to determine how to leverage and improve the firm's existing competencies on a global basis.What are the two most basic questions that they must answer?

What problems are common with the published data available about different countries?

U.S.companies generally put earlier and more emphasis on countries in which they perceive it is easier to operate.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters