Question 1

In a short essay,discuss why simply examining a country's per capita GDP and its population doesn't necessarily lead to a good estimate for potential demand.

Accepted Answer

a.Obsolescence and leapfrogging of produ

Question 2

Why do companies often treat foreign reinvestment decisions differently than new foreign investment decisions?

Accepted Answer

Companies treat decisions to replace dep

Question 3

A company can best benefit from a first-mover advantage by moving into a small country,before entering a much larger country.

Accepted Answer

A) True 
 B)False

Question 4

Carrefour expanded internationally by first ________.

Accepted Answer

A)  entering adjacent countries 
B)  licensing its name to other companies 
C)  buying companies in foreign countries 
D)  entering many countries simultaneously with small commitments in each 
A)  entering adjacent countries 
B)  licensing its name to other companies 
C)  buying companies in foreign countries 
D)  entering many countries simultaneously with small commitments in each

Question 5

Published government data is most often inaccurate because of translation errors from other countries' languages.

Accepted Answer

A) True 
 B)False

Question 6

Instead of comparing different proposals involving foreign operations,companies often make decisions by looking at proposals one at a time.All of the following are reasons for this behavior EXCEPT which one?

Accepted Answer

A)  Companies need to respond quickly to opportunities. 
B)  Defensive decisions typically need to be made rapidly. 
C)  A lack of comparable data on different countries renders comparison impossible. 
D)  Conclusion of different proposals or studies does not usually happen simultaneously. 
A)  Companies need to respond quickly to opportunities. 
B)  Defensive decisions typically need to be made rapidly. 
C)  A lack of comparable data on different countries renders comparison impossible. 
D)  Conclusion of different proposals or studies does not usually happen simultaneously.

Question 7

Headquarters management often feels that people within an established operation are the best judge of the operation's investment needs.

Accepted Answer

A) True 
 B)False

Question 8

An example of a first-mover advantage in international operations is ________.

Accepted Answer

A)  gaining economies of scale at a lower output level than competitors 
B)  increasing sales response functions and customer service 
C)  using a small country for market tests prior to entering a large country 
D)  lining up the best suppliers and distributors before competitors enter the market 
A)  gaining economies of scale at a lower output level than competitors 
B)  increasing sales response functions and customer service 
C)  using a small country for market tests prior to entering a large country 
D)  lining up the best suppliers and distributors before competitors enter the market

Question 9

When choosing international operating locations,companies should outsource the preparation of grids or matrices to experts rather than preparing them with their own personnel.

Accepted Answer

A) True 
 B)False

Question 10

When comparing economic and demographic variables among countries,one should consider that consumers in developing countries do not necessarily follow the same historical patterns as those in more developed countries.

Accepted Answer

A) True 
 B)False

Question 11

The number of computer industry firms located in California's Silicon Valley exemplifies the concept of agglomeration.

Accepted Answer

A) True 
 B)False

Question 12

Profit figures for individual country operations may obscure the real impact those operations have on total global performance.

Accepted Answer

A) True 
 B)False

Question 13

Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.

Accepted Answer

A) True 
 B)False

Question 14

Escalation of commitment is best described as the ________.

Accepted Answer

A)  strategy of first entering a country on a small scale 
B)  process of entering a country because "everyone else is going there" 
C)  expectation of a higher return in more politically risky environments 
D)  increased likelihood of investing in a country because of having spent considerable time and money in examining it 
A)  strategy of first entering a country on a small scale 
B)  process of entering a country because "everyone else is going there" 
C)  expectation of a higher return in more politically risky environments 
D)  increased likelihood of investing in a country because of having spent considerable time and money in examining it

Question 15

Assume Company A receives a proposal from Company B to be a joint venture partner abroad.Company A is most likely to make its decision based on ________.

Accepted Answer

A)  an opportunity-risk matrix 
B)  a go/no-go basis 
C)  a global matrix comparison 
D)  an oligopolistic reaction 
A)  an opportunity-risk matrix 
B)  a go/no-go basis 
C)  a global matrix comparison 
D)  an oligopolistic reaction

Question 16

A company's overall geographic strategy should be flexible enough to ________.

Accepted Answer

A)  implement concentration strategies instead of diversification strategies 
B)  respond to new opportunities and withdraw from less profitable ones 
C)  import from anywhere in the world to a single production location 
D)  export anywhere in the world from a single production location 
A)  implement concentration strategies instead of diversification strategies 
B)  respond to new opportunities and withdraw from less profitable ones 
C)  import from anywhere in the world to a single production location 
D)  export anywhere in the world from a single production location

Question 17

A company should probably use a concentration strategy for international expansion when there are ________.

Accepted Answer

A)  high needs for product adaptation and low growth in each market 
B)  short competitive lead times and low spillover effects 
C)  high growth rate and long competitive lead times 
D)  low sales stability and short competitive lead times 
A)  high needs for product adaptation and low growth in each market 
B)  short competitive lead times and low spillover effects 
C)  high growth rate and long competitive lead times 
D)  low sales stability and short competitive lead times

Question 18

An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

Accepted Answer

A) True 
 B)False

Question 19

We now have technology to allow people to communicate globally without traveling as much.Leading researchers on urbanization and planning suggest that the most likely consequence of this is ________.

Accepted Answer

A)  a decrease in international airline travel 
B)  a decreased need for immigration restrictions 
C)  a smaller number of retirees living in urban areas 
D)  a greater number of self-motivated workers e-mailing and teleconferencing with colleagues 
A)  a decrease in international airline travel 
B)  a decreased need for immigration restrictions 
C)  a smaller number of retirees living in urban areas 
D)  a greater number of self-motivated workers e-mailing and teleconferencing with colleagues

Question 20

Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Accepted Answer

A)  These business environments allowed Burger King to take advantage of economies of scale. 
B)  These countries are close to a Burger King's headquarters. 
C)  These countries offered greater mobility of funds than countries in the European Union. 
D)  Unlike the BRIC countries, these business environments did not require escalation of commitment. 
A)  These business environments allowed Burger King to take advantage of economies of scale. 
B)  These countries are close to a Burger King's headquarters. 
C)  These countries offered greater mobility of funds than countries in the European Union. 
D)  Unlike the BRIC countries, these business environments did not require escalation of commitment.

In a short essay,discuss why simply examining a country's per capita GDP and its population doesn't necessarily lead to a good estimate for potential demand.

Why do companies often treat foreign reinvestment decisions differently than new foreign investment decisions?

A company can best benefit from a first-mover advantage by moving into a small country,before entering a much larger country.

Carrefour expanded internationally by first ________.

Published government data is most often inaccurate because of translation errors from other countries' languages.

Instead of comparing different proposals involving foreign operations,companies often make decisions by looking at proposals one at a time.All of the following are reasons for this behavior EXCEPT which one?

Headquarters management often feels that people within an established operation are the best judge of the operation's investment needs.

An example of a first-mover advantage in international operations is ________.

When choosing international operating locations,companies should outsource the preparation of grids or matrices to experts rather than preparing them with their own personnel.

When comparing economic and demographic variables among countries,one should consider that consumers in developing countries do not necessarily follow the same historical patterns as those in more developed countries.

The number of computer industry firms located in California's Silicon Valley exemplifies the concept of agglomeration.

Profit figures for individual country operations may obscure the real impact those operations have on total global performance.

Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.

Escalation of commitment is best described as the ________.

Assume Company A receives a proposal from Company B to be a joint venture partner abroad.Company A is most likely to make its decision based on ________.

A company's overall geographic strategy should be flexible enough to ________.

A company should probably use a concentration strategy for international expansion when there are ________.

An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

We now have technology to allow people to communicate globally without traveling as much.Leading researchers on urbanization and planning suggest that the most likely consequence of this is ________.

Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

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

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 13: Country Evaluation and Selection

In a short essay,discuss why simply examining a country's per capita GDP and its population doesn't necessarily lead to a good estimate for potential demand.

Why do companies often treat foreign reinvestment decisions differently than new foreign investment decisions?

A company can best benefit from a first-mover advantage by moving into a small country,before entering a much larger country.

Carrefour expanded internationally by first ________.

Published government data is most often inaccurate because of translation errors from other countries' languages.

Instead of comparing different proposals involving foreign operations,companies often make decisions by looking at proposals one at a time.All of the following are reasons for this behavior EXCEPT which one?

Headquarters management often feels that people within an established operation are the best judge of the operation's investment needs.

An example of a first-mover advantage in international operations is ________.

When choosing international operating locations,companies should outsource the preparation of grids or matrices to experts rather than preparing them with their own personnel.

When comparing economic and demographic variables among countries,one should consider that consumers in developing countries do not necessarily follow the same historical patterns as those in more developed countries.

The number of computer industry firms located in California's Silicon Valley exemplifies the concept of agglomeration.

Profit figures for individual country operations may obscure the real impact those operations have on total global performance.

Good scanning helps managers avoid the need to make a detailed analysis of countries when deciding where to operate.

Escalation of commitment is best described as the ________.

Assume Company A receives a proposal from Company B to be a joint venture partner abroad.Company A is most likely to make its decision based on ________.

A company's overall geographic strategy should be flexible enough to ________.

A company should probably use a concentration strategy for international expansion when there are ________.

An advantage of locating operations where there are many competitors is that the cluster of competing firms attracts multiple suppliers and specialized personnel.

We now have technology to allow people to communicate globally without traveling as much.Leading researchers on urbanization and planning suggest that the most likely consequence of this is ________.

Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

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

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters