Exam 13: Country Evaluation and Selection

Top executives at Jordan,a U.S.consulting firm,are debating whether or not to expand into a country with a great deal of violence by staffing mostly with U.S.personnel.A vice president argues that Jordan should forego sending its employees there because of the high risk for them of kidnappings in the region.Which of the following statements best supports the vice president's position?

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(Multiple Choice)

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Question 1

Correct Answer:

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Why do companies engage in international harvesting or divestment?

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(Essay)

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Question 2

Correct Answer:

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Companies commonly reduce commitments in some countries because those countries have poorer performance prospects than do others,a process known as harvesting or divesting.Companies may divest by selling or closing facilities.They usually prefer selling because they receive some compensation.A company that considers divesting because of a country's political or economic situation may find few potential buyers except at very low prices.In such situations,the company may try to delay divestment,hoping the situation will improve.If it does,the firm that "waits out" the situation generally is in a better position to regain markets and profits than one that forsakes its operations.

Which of the following is true about projected demographic changes up to the year 2050 that could affect future production and sales locations?

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(Multiple Choice)

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Question 3

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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 ________.

(Multiple Choice)

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Question 4

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?

(Multiple Choice)

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Question 5

The major use of the matrix as a tool in international location strategy is to ________.

(Multiple Choice)

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Question 6

Which of the following best explains Blockbuster's failed expansion into Germany?

(Multiple Choice)

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Question 7

Opal Computers is considering international production expansion.After scanning to decide on a few countries to consider more closely,Opal managers will most likely need to ________.

(Multiple Choice)

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Question 8

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?

(Multiple Choice)

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Question 9

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

(True/False)

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Question 10

Which of the following is most likely a true statement about companies' acquisition of resources/assets abroad?

(Multiple Choice)

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Question 11

When income inequality is high in a specific country,the per capita GDP figures are more meaningful.

(True/False)

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Question 12

What is meant by liability of foreignness? How might this influence location and allocation decisions?

(Essay)

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Question 13

It is generally agreed that because of technical advancements,managers will not need face-to-face communication in the future.

(True/False)

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Question 14

A manager needs to prepare a grid to compare countries for location of the firm's international operations.It would be most useful for the manager to ________.

(Multiple Choice)

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Question 15

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

(Multiple Choice)

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Question 16

Comparability of economic information among countries is hampered by countries' use of different definitions for similar terms.

(True/False)

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Question 17

Liability of foreignness refers to the situation in which a government has more stringent legal operating regulations on foreigners and foreign companies than on its own citizens and companies.

(True/False)

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Question 18

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?

(Essay)

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Question 19

The decision-making process for a company's reinvestment choices is often different from those for new investment choices because ________.

(Multiple Choice)

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Question 20

Showing 1 - 20 of 100

Why do companies engage in international harvesting or divestment?

Which of the following is true about projected demographic changes up to the year 2050 that could affect future production and sales locations?

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?

The major use of the matrix as a tool in international location strategy is to ________.

Which of the following best explains Blockbuster's failed expansion into Germany?

Opal Computers is considering international production expansion.After scanning to decide on a few countries to consider more closely,Opal managers will most likely need to ________.

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?

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 most likely a true statement about companies' acquisition of resources/assets abroad?

When income inequality is high in a specific country,the per capita GDP figures are more meaningful.

What is meant by liability of foreignness? How might this influence location and allocation decisions?

It is generally agreed that because of technical advancements,managers will not need face-to-face communication in the future.

A manager needs to prepare a grid to compare countries for location of the firm's international operations.It would be most useful for the manager to ________.

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

Comparability of economic information among countries is hampered by countries' use of different definitions for similar terms.

Liability of foreignness refers to the situation in which a government has more stringent legal operating regulations on foreigners and foreign companies than on its own citizens and companies.

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?

The decision-making process for a company's reinvestment choices is often different from those for new investment choices because ________.

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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

Globalization and Society

The Strategy of International Business

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

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