Exam 13: Country Evaluation and Selection

In a concentration strategy for international expansion, a company goes first to one or a few countries and builds up fast there before going to other countries.

When choosing international operating locations, companies should outsource the preparation of grids or matrices to experts rather than preparing them with their own personnel.

A company can best benefit from a first-mover advantage by moving into a small country before entering a much larger country.

In assessing political risk, the observation of past patterns is problematic because situations may change for better or worse.

The lower survival rate of foreign companies in comparison to local firms for many years after they begin operations is known as ________.

Labor cost advantages gained by moving into a country with low wages may be short-lived because tax increases cancel out the low-wage advantages.

Companies have tended to wait too long to divest poorly performing foreign facilities, trying instead to improve performance through expensive means.

In a concentration strategy of international expansion, a company would go to ________.

Top executives at Jordan, a U.S.consulting firm, are debating whether or not to expand operations into a country with a great deal of violence by staffing mostly with U.S.personnel.A vice president argues that Jordan should send its employees there.Which of the following statements LEAST supports the vice president's position?

Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.

U.S.companies generally put earlier and more sales-seeking emphasis on countries ________.

Gucci, a maker of luxury fashion and leather goods, plans to expand its sales market.The firm needs to compare countries for the market potential of its products.Which of the following is the best indicator for Gucci to use?

Unlike grids, matrices do not require managers to determine weights for factors that indicate risk.

A company's location should be flexible enough to ________.

Governments that conduct takeovers of foreign companies rarely make formal declarations of their intent to take over in advance of the action.

Which of the following is generally the most costly information source for companies?

Companies are more likely to gain advantages by locating near competitors for all the following reasons EXCEPT to ________.

Elison Enterprises is planning international geographic expansion.A manager at Elison has been given the task of scanning for locations primarily to ________.

An example of a first-mover advantage in international operations is ________.

In terms of political risk, it is most accurate to state that high risk ________.