Question 1

Which of the following is true of licensing/franchising?

Accepted Answer

A)  The licensor/franchisor has to bear the full costs and risks associated with foreign expansion. 
B)  The licensing/franchising strategy creates very limited competitors. 
C)  The licensor/franchisor has the ability to coordinate globally. 
D)  The licensor/franchisor does not have tight control over technology and marketing. 
A)  The licensor/franchisor has to bear the full costs and risks associated with foreign expansion. 
B)  The licensing/franchising strategy creates very limited competitors. 
C)  The licensor/franchisor has the ability to coordinate globally. 
D)  The licensor/franchisor does not have tight control over technology and marketing.

Question 2

Which of the following is a first-mover advantage?

Accepted Answer

A)  Avoidance of clash with a dominant firm at home 
B)  Opportunity to free ride on second mover investments 
C)  Resolution of technological and market uncertainty 
D)  No difficulty in adapting to market changes 
A)  Avoidance of clash with a dominant firm at home 
B)  Opportunity to free ride on second mover investments 
C)  Resolution of technological and market uncertainty 
D)  No difficulty in adapting to market changes

Question 3

Which of the following conforms to the notion put forward by the school of thought associated with stage models?

Accepted Answer

A)  Firms will enter culturally distant countries during their first stage of internationalization. 
B)  Considerations of strategic goals are more important than cultural/institutional considerations. 
C)  Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries. 
D)  Firms enter culturally distant countries in later stages when they may gain more confidence. 
A)  Firms will enter culturally distant countries during their first stage of internationalization. 
B)  Considerations of strategic goals are more important than cultural/institutional considerations. 
C)  Natural resource-seeking firms have compelling reasons to enter culturally and institutionally distant countries. 
D)  Firms enter culturally distant countries in later stages when they may gain more confidence.

Question 4

Cultural distance is the difference between two cultures along some identifiable dimensions.

Accepted Answer

A) True 
 B)False

Question 5

The country-of-origin effect refers to _____.

Accepted Answer

A)  the inherent advantages domestic firms experience in their home countries 
B)  the inherent disadvantages foreign firms experience in home countries 
C)  the positive or negative perception of firms and products from a certain country 
D)  only the negative perception of firms and products from a certain country 
A)  the inherent advantages domestic firms experience in their home countries 
B)  the inherent disadvantages foreign firms experience in home countries 
C)  the positive or negative perception of firms and products from a certain country 
D)  only the negative perception of firms and products from a certain country

Question 6

Identify the advantages that pertain to first movers and late movers.

Accepted Answer

First-mover advantages include (1) propr

Question 7

What are turnkey projects? What are its advantages and disadvantages compared to other modes of entry?

Accepted Answer

Turnkey projects refer to projects in wh

Question 8

A build-operate-transfer (BOT) agreement is an equity mode of entry.

Accepted Answer

A) True 
 B)False

Question 9

Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage of direct exports?

Accepted Answer

A)  No trade barriers 
B)  Low transportation costs for bulky products 
C)  Avoid export processes 
D)  Better control over distribution 
A)  No trade barriers 
B)  Low transportation costs for bulky products 
C)  Avoid export processes 
D)  Better control over distribution

Question 11

One of the advantages of being a first-mover is the opportunity to free ride on late-mover investments.

Accepted Answer

A) True 
 B)False

Question 12

Turnkey projects cannot be established without FDI.

Accepted Answer

A) True 
 B)False

Question 13

_____ refers to the clustering of economic activities in certain locations.

Accepted Answer

A)  Joint venture 
B)  Agglomeration 
C)  Expropriation 
D)  Intrafirm trade 
A)  Joint venture 
B)  Agglomeration 
C)  Expropriation 
D)  Intrafirm trade

Question 14

The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.

Accepted Answer

A) True 
 B)False

Question 15

One of the late-mover disadvantages is the establishment of entry barriers by the first-mover.

Accepted Answer

A) True 
 B)False

Question 16

Compare and contrast between the strategies of direct and indirect exports.

Accepted Answer

Direct exports are the most basic mode o

Question 17

In _____,clients pay contractors to design and construct new facilities and train personnel.

Accepted Answer

A)  franchising 
B)  turnkey projects 
C)  licensing 
D)  co-marketing 
A)  franchising 
B)  turnkey projects 
C)  licensing 
D)  co-marketing

Question 18

Liability of foreignness is the inherent disadvantage firms experience in home countries.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following characterizes an MNE from a non-MNE?

Accepted Answer

A)  It enters foreign markets via non-equity modes. 
B)  It exports or imports with or without FDI. 
C)  It enjoys OLI advantages. 
D)  It enters foreign markets through FPI. 
A)  It enters foreign markets via non-equity modes. 
B)  It exports or imports with or without FDI. 
C)  It enjoys OLI advantages. 
D)  It enters foreign markets through FPI.

Question 20

Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.

Accepted Answer

A) True 
 B)False

Which of the following is true of licensing/franchising?

Which of the following is a first-mover advantage?

Which of the following conforms to the notion put forward by the school of thought associated with stage models?

Cultural distance is the difference between two cultures along some identifiable dimensions.

The country-of-origin effect refers to _____.

Identify the advantages that pertain to first movers and late movers.

What are turnkey projects? What are its advantages and disadvantages compared to other modes of entry?

A build-operate-transfer (BOT) agreement is an equity mode of entry.

Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.

Which of the following is an advantage of direct exports?

One of the advantages of being a first-mover is the opportunity to free ride on late-mover investments.

Turnkey projects cannot be established without FDI.

_____ refers to the clustering of economic activities in certain locations.

The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.

One of the late-mover disadvantages is the establishment of entry barriers by the first-mover.

Compare and contrast between the strategies of direct and indirect exports.

In _____,clients pay contractors to design and construct new facilities and train personnel.

Liability of foreignness is the inherent disadvantage firms experience in home countries.

Which of the following characterizes an MNE from a non-MNE?

Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

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Exam 10: Entering Foreign Markets

Which of the following is true of licensing/franchising?

Which of the following is a first-mover advantage?

Which of the following conforms to the notion put forward by the school of thought associated with stage models?

Cultural distance is the difference between two cultures along some identifiable dimensions.

The country-of-origin effect refers to _____.

Identify the advantages that pertain to first movers and late movers.

What are turnkey projects? What are its advantages and disadvantages compared to other modes of entry?

A build-operate-transfer (BOT) agreement is an equity mode of entry.

Indirect exports are the most basic mode of entry,capitalizing on economies of scale in production concentrated in the home country.

Which of the following is an advantage of direct exports?

One of the advantages of being a first-mover is the opportunity to free ride on late-mover investments.

Turnkey projects cannot be established without FDI.

_____ refers to the clustering of economic activities in certain locations.

The existence of multiple currencies and the resultant currency risks can be viewed as informal trade and investment barriers.

One of the late-mover disadvantages is the establishment of entry barriers by the first-mover.

Compare and contrast between the strategies of direct and indirect exports.

In _____,clients pay contractors to design and construct new facilities and train personnel.

Liability of foreignness is the inherent disadvantage firms experience in home countries.

Which of the following characterizes an MNE from a non-MNE?

Non-equity modes of entry include acquisitions and wholly-owned subsidiaries.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters