Exam 13: Country Evaluation and Selection

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

Companies are usually willing to accept a lower rate of return on their investments in countries where they can more easily sell those investments and convert the proceeds at a favorable rate.

In developed countries,the percentage of the working-age population (using today's standards)is expected to rise by 2050.

In a short essay,discuss liquidity preference as it relates to monetary risk.

Losses to companies from natural disasters are much less risky than losses from operating in violent areas.

Sales expansion is probably the most important variable in determining international location decisions.This statement is most likely based on the assumption that ________.

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.

Sales potential is probably the most important variable in determining international location decisions because consumer demand exceeds supply.

Labor cost advantages gained by moving into a country with low wages may be short-lived because ________.

Fidelity Manufacturing is considering expanding its operations into the Philippines.A manager at Fidelity has the task of predicting political risk in the Philippines.Which of the following approaches should the manager LEAST use to accomplish the task?

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

When examining economic and demographic variables to compare countries' sales potential for your product,you should also consider all the following EXCEPT which one?

A go/no-go decision for foreign expansion means that management reviews existing information and decides whether more information is needed.

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?

Which of the following statements is NOT true about risk as it affects companies' choice of locations for foreign operations?

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?

Risks to companies from natural disasters and communicable diseases are ________.

Why do most companies examine expansion proposals one at a time rather than comparing various expansion proposals? Do you think this is effective? Why or why not?

Compare the advantages of locating foreign operations to avoid where competitors have gone versus locating where competitors are.

The concept of liquidity preference in international operations refers to ________.