Exam 13: Country Evaluation and Selection

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

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

In a short essay,compare the strategies of diversification versus concentration and provide examples of situations in which each would be used.

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

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?

Which of the following is the LEAST likely reason for inaccuracies in published governmental data?

Which of the following best explains why U.S.firms typically place earlier and greater emphasis on expansion into Canada and the U.K.?

Committing resources to one country usually means forgoing or delaying projects in others.

Grids are a useful method of comparing countries for international business expansion because they ________.

In which of the following situations would tax rate differences among countries be most important for deciding where to place an investment?

Executives at Wilson Enterprises need to determine how to leverage and improve the firm's existing competencies on a global basis.What are the two most basic questions that they must answer?

The ability to compare production costs among countries in an effort to determine where to locate production is significantly hampered by all of the following EXCEPT ________.

When planning international geographic expansion,decision makers use scanning to reduce the number of options available to a manageable number for further detailed analysis.

International managers most likely need to understand how to evaluate international geographic alternatives because ________.

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

A company's operations are most likely to be taken over by a host government when ________.

The origin of investment proposals differs from the origin of divestment proposals in that the divestment proposals are more likely to come from ________.

Because many regional trading groups prohibit companies from producing in more than one member country,companies need to understand how to evaluate international geographic alternatives.

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

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.