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In Euromoney magazine's 2017 semi-annual "Country Risk Rating" evaluating political,economic,and other risks that entrants to international markets potentially face,which of the following countries have the next to the highest country economic risk?


A) South Africa and Russia
B) Singapore and China
C) Argentina and Bahrain
D) Kazakhstan and Colombia

E) A) and B)
F) A) and D)

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Two opposing pressures that managers face when they compete in foreign markets are cost reduction and adaptation to foreign markets.

A) True
B) False

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In considering the decision to offshore,which of the following generally is not one of the hidden costs?


A) total wage costs and indirect costs
B) wage deflation
C) reduction in intellectual property rights
D) increased inventory and coordination costs

E) None of the above
F) B) and D)

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When firms expand into global markets,they are faced with the choice of reducing costs and/or adapting to the local market.When high pressures exist to lower costs,companies should choose a(n) ________ strategy or ________ strategy in order to compete in the global marketplace.


A) global;transnational
B) global;multidomestic
C) international;multidomestic
D) international;transnational

E) A) and B)
F) A) and C)

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Explain the role of factor endowments in the rise of the software industry in India.

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Factor endowments are conducive to the r...

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A domestic corporation considering international expansion for the first time typically will follow which of these paths?


A) It will start by implementing a wholly owned foreign subsidiary.
B) It will implement a low-risk,low-control strategy such as exporting.
C) It will license or franchise its operations.
D) It will form a joint venture with a reputable foreign producer.

E) C) and D)
F) A) and B)

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________ are fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark,patent,trade secret,technology) .


A) Transfer prices
B) Dividends
C) Royalties
D) Intra-corporate inflows

E) All of the above
F) B) and C)

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A U.S.firm expands into China and Canada at exactly the same sales volume.The physical distance is the only factor that affects the true distance between the countries.

A) True
B) False

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Rivalry is intense in nations with conditions of ________ consumer demand,________ supplier bases,and ________ new entrant potential from related industries.


A) weak;weak;high
B) strong;strong;low
C) weak;weak;low
D) strong;strong;high

E) A) and D)
F) C) and D)

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Because many countries are investing in countries other than their own,each country is becoming more autonomous and independent.

A) True
B) False

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If a company is considering optimizing the physical location for every activity in the value chain,which of the following is not a possible strategic advantage for that decision?


A) performance enhancement
B) cost reduction
C) political risk reduction
D) life-cycle enhancement

E) A) and B)
F) A) and C)

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Countries with demanding consumers,like environmentally-concerned Denmark,drive ________ to meet the demand.


A) worldwide innovation
B) in-country innovation
C) foreign manufacturing
D) global exchange

E) None of the above
F) All of the above

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Which one of the following is not a strength of transnational strategies?


A) ability to attain economies of scale
B) ability to adapt to local markets
C) ability to locate activities in optimal locations
D) ability to decrease knowledge flows and learning

E) A) and D)
F) A) and B)

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Shared Spanish colonialism is one reason that explains regionalism tendencies in


A) Asia.
B) South America.
C) the United States.
D) Africa.

E) A) and D)
F) B) and C)

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Industries in which proportionally more value is added in ________ activities are more likely to benefit from a global strategy.


A) downstream
B) upstream
C) marketing
D) sales

E) A) and C)
F) C) and D)

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As in the case of Siebel Systems (now part of Oracle) ,elements of a global strategy may facilitate the competitive advantage of differentiation by


A) increased freedom of individual business units to adapt to local tastes.
B) the creation of a worldwide network to achieve consistent service regardless of location.
C) flexibility in applying research and development to meet country-specific needs.
D) tailoring products to meet country-specific needs.

E) B) and C)
F) A) and D)

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The difference between a franchise contract and a licensing contract is that a


A) franchise contract is more specific and usually longer in duration.
B) franchise contract must include a foreign government.
C) licensing contract covers more aspects of operations.
D) franchise contract involves less control and less risk.

E) None of the above
F) All of the above

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Theodore Levitt,a marketing strategist,argued that people around the world are willing to sacrifice preferences in product features,functions,and design for lower prices and lower quality.

A) True
B) False

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A report issued by the World Trade Organization described the production of a particular U.S.car.The study showed that 30 percent of the car value goes to Korea for assembly,17.5 percent to Japan for components and advanced technology,7.5 percent to Germany for design,4 percent to Taiwan and Singapore for minor parts,2.5 percent to U.K.for advertising and marketing services,and 1.5 percent to Ireland and Barbados for data processing.This is an example of


A) outsourcing and offshoring.
B) outsourcing and on-shoring.
C) insourcing and offshoring.
D) insourcing and outsourcing.

E) C) and D)
F) B) and C)

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Which of the following is not a source of political risk in many countries?


A) the presence of social unrest
B) the presence of the rule of law
C) the presence of military turmoil
D) the presence of violent conflict

E) None of the above
F) All of the above

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