Question 1

The non-equity mode of indirect exports has better control over distribution than direct exports.

Accepted Answer

A) True 
 B)False

Question 2

Late movers face greater technological and market uncertainties.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is true of modes of entry?

Accepted Answer

A)  Non-equity modes require the establishment of independent organizations overseas. 
B)  Non-equity modes are methods used to enter a market in the home country. 
C)  Equity modes are indicative of relatively larger, harder-to-reverse commitments. 
D)  Equity modes do not require the establishment of independent organizations overseas. 
A)  Non-equity modes require the establishment of independent organizations overseas. 
B)  Non-equity modes are methods used to enter a market in the home country. 
C)  Equity modes are indicative of relatively larger, harder-to-reverse commitments. 
D)  Equity modes do not require the establishment of independent organizations overseas.

Question 4

Governments can ban foreigners and foreign firms from owning assets in certain strategic sectors.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

Which of the following is an equity mode of entry?

Accepted Answer

A)  Indirect exports 
B)  Wholly owned subsidiaries 
C)  R&D contracts 
D)  Licensing/franchising 
A)  Indirect exports 
B)  Wholly owned subsidiaries 
C)  R&D contracts 
D)  Licensing/franchising

Question 8

A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India or U.S.A or any other country.This is an example of _____.

Accepted Answer

A)  agglomeration 
B)  the liability of foreignness 
C)  benchmarking 
D)  the country-of-origin effect 
A)  agglomeration 
B)  the liability of foreignness 
C)  benchmarking 
D)  the country-of-origin effect

Question 9

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 10

What are the two sets of considerations that drive the location of foreign entities?

Accepted Answer

The two sets of considerations are strat

Question 11

Which of the following is a disadvantage of licensing and franchising?

Accepted Answer

A)  Little control over marketing 
B)  High development costs 
C)  High risk in overseas expansion 
D)  Creation of a monopoly 
A)  Little control over marketing 
B)  High development costs 
C)  High risk in overseas expansion 
D)  Creation of a monopoly

Question 12

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 13

Strategic goals and cultural and institutional distances influence the location of foreign entries.

Accepted Answer

A) True 
 B)False

Question 14

A disadvantage of acquisitions is _____.

Accepted Answer

A)  the inability to add new capacity to industry 
B)  the inability to coordinate globally 
C)  high development costs 
D)  the slow entry speed 
A)  the inability to add new capacity to industry 
B)  the inability to coordinate globally 
C)  high development costs 
D)  the slow entry speed

Question 15

_____ 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 16

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

Accepted Answer

Direct exports are the most basic mode o

Question 17

Explain briefly the meaning of liability of foreignness.Why is it difficult for companies to succeed in foreign markets?

Accepted Answer

Firms have to overcome the liability of

Question 18

A disadvantage of licensing is high development costs.

Accepted Answer

A) True 
 B)False

The non-equity mode of indirect exports has better control over distribution than direct exports.

Late movers face greater technological and market uncertainties.

Which of the following is true of modes of entry?

Governments can ban foreigners and foreign firms from owning assets in certain strategic sectors.

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

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

Which of the following is an equity mode of entry?

A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India or U.S.A or any other country.This is an example of _____.

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

What are the two sets of considerations that drive the location of foreign entities?

Which of the following is a disadvantage of licensing and franchising?

The country-of-origin effect refers to _____.

Strategic goals and cultural and institutional distances influence the location of foreign entries.

A disadvantage of acquisitions is _____.

_____ refers to the clustering of economic activities in certain locations

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

Explain briefly the meaning of liability of foreignness.Why is it difficult for companies to succeed in foreign markets?

A disadvantage of licensing is high development costs.

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

The non-equity mode of indirect exports has better control over distribution than direct exports.

Late movers face greater technological and market uncertainties.

Which of the following is true of modes of entry?

Governments can ban foreigners and foreign firms from owning assets in certain strategic sectors.

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

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

Which of the following is an equity mode of entry?

A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India or U.S.A or any other country.This is an example of _____.

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

What are the two sets of considerations that drive the location of foreign entities?

Which of the following is a disadvantage of licensing and franchising?

The country-of-origin effect refers to _____.

Strategic goals and cultural and institutional distances influence the location of foreign entries.

A disadvantage of acquisitions is _____.

_____ refers to the clustering of economic activities in certain locations

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

Explain briefly the meaning of liability of foreignness.Why is it difficult for companies to succeed in foreign markets?

A disadvantage of licensing is high development costs.

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