Question 1

A franchise generally expires after a few years,whereas a license is designed to last into perpetuity.

Accepted Answer

A) True 
 B)False

Question 2

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 lowest country political risk?

Accepted Answer

A)  Libya and Argentina
B)  Singapore and Hong Kong
C)  Norway and Canada
D)  China and BahrainE) A) and B)
F) None of the above

Question 3

In reviewing the Indian software industry and the diamond of national advantage,which of the following is a relatively weak set of factors in the national competitive advantage in this industry?

Accepted Answer

A)  U.S.demand conditions
B)  factor endowments
C)  domestic rivalry
D)  domestic demand conditionsE) All of the above
F) B) and C)

Question 4

A ________ is a business in which a multinational company owns 100 percent of the stock.

Accepted Answer

A)  wholly owned subsidiary
B)  strategic alliance
C)  joint venture
D)  franchising operationE) All of the above
F) A) and B)

Question 5

Which of the following is a reason for the rise in regional expansion?

Accepted Answer

A)  increase in the number of trading blocs and free trade zones
B)  decrease in the number of trading blocs and free trade zones
C)  increasing national trade restrictions
D)  increasing local taxes and tariffsE) All of the above
F) None of the above

Question 6

In the Porter diamond-of-national-advantage framework,which of the following factors does not affect competitiveness of a nation?

Accepted Answer

A)  the position of the nation in factors of production necessary to compete in a given industry
B)  the presence or absence in the nation of internationally competitive supplier industries
C)  the conditions in the nation governing the nature of foreign rivalry
D)  the nature of home-market demand of the products or services of the industryE) B) and C)
F) B) and D)

Question 7

Panasonic entered the market in China and found that it needed to balance global integration with local adaptation.It set up a Lifestyle Research Center in China to interpret data on customer wants and needs.This is an example of a company using ________ strategy.

Accepted Answer

A)  an international
B)  a multidomestic
C)  a single country
D)  a transnationalE) B) and C)
F) All of the above

Question 8

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Accepted Answer

A)  social
B)  multinational
C)  market
D)  democraticE) B) and C)
F) A) and B)

Question 9

Arbitrage opportunities are simple trading opportunities and therefore account for little of the success Walmart experiences.

Accepted Answer

A) True 
 B)False

Question 10

To meet market needs companies sometimes change product names so that the name in the local language is culturally meaningful.This is an example of a company using ________ strategy.

Accepted Answer

A)  an international
B)  a multidomestic
C)  a single country
D)  a transnationalE) None of the above
F) All of the above

Question 11

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

Accepted Answer

A)  true distance is smaller between the United States and Canada.
B)  all three countries share the same legal system.
C)  there are few immigration problems with Mexico.
D)  Americans prefer Canadian food to Mexican food.E) C) and D)
F) A) and B)

Question 12

Which one of the following is not a Western hemisphere trade bloc?

Accepted Answer

A)  NAFTA
B)  MERCOSUR
C)  ASEAN
D)  Latin American Integration AssociationE) A) and C)
F) None of the above

Question 13

Which of the following describes the most typical order of entry into foreign markets?

Accepted Answer

A)  franchising,licensing,exporting,joint venture,and wholly owned subsidiary
B)  exporting,franchising,licensing,joint venture,and wholly owned subsidiary
C)  licensing,exporting,franchising,joint venture,and wholly owned subsidiary
D)  exporting,licensing,franchising,joint venture,and wholly owned subsidiaryE) B) and C)
F) A) and B)

Question 14

Green tea Oreos in China,chocolate and peanut butter Oreos in Indonesia,and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.

Accepted Answer

A)  an international
B)  a multidomestic
C)  a single country
D)  a transnationalE) A) and B)
F) A) and C)

Question 15

________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

Accepted Answer

A)  Offshoring
B)  A global strategy
C)  Outsourcing
D)  A transnational strategyE) B) and C)
F) B) and D)

Question 16

Which one of the following explains why so few firms are global?

Accepted Answer

A)  Culture,language,and religion are similar between countries.
B)  Legal and political systems are similar between countries.
C)  Governments are increasing trade restrictions in general.
D)  Geographic distance is multiplied by distance in culture,language,religion,and legal and political systems.E) None of the above
F) A) and D)

Question 17

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Accepted Answer

A)  large pool of skilled workers
B)  large,growing market and sophisticated customers
C)  tax and antitrust legislation that protects the dominant players in the industry
D)  large network of public and private educational institutionsE) A) and B)
F) A) and C)

Question 18

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Accepted Answer

A)  South Korea
B)  China
C)  Colombia
D)  ArgentinaE) C) and D)
F) B) and D)

Question 19

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from

Accepted Answer

A)  higher prices in their domestic markets.
B)  reducing their exposure to currency risks.
C)  economies of scale.
D)  optimizing the location for many activities in their value chain.E) A) and B)
F) A) and C)

Question 20

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Accepted Answer

A)  local;local
B)  local;global
C)  global;local
D)  global;globalE) A) and B)
F) A) and C)

Exam 7: International Strategy: Creating Value in Global Markets

To meet market needs companies sometimes change product names so that the name in the local language is culturally meaningful.This is an example of a company using ________ strategy.

Correct AnswerverifiedShow Answer

Which one of the following explains why so few firms are global?

Correct AnswerverifiedShow Answer

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 lowest country political risk?

Correct AnswerverifiedShow Answer

Arbitrage opportunities are simple trading opportunities and therefore account for little of the success Walmart experiences.

Correct AnswerverifiedShow Answer

Which of the following is a reason for the rise in regional expansion?

Correct AnswerverifiedShow Answer

Multinational firms are constantly faced with the decision of choosing between ________ adaptation and ________ integration.

Correct AnswerverifiedShow Answer

The rise of ________ capitalism around the world creates tremendous business opportunities for multinational corporations.

Correct AnswerverifiedShow Answer

Panasonic entered the market in China and found that it needed to balance global integration with local adaptation.It set up a Lifestyle Research Center in China to interpret data on customer wants and needs.This is an example of a company using ________ strategy.

Correct AnswerverifiedShow Answer

Which one of the following is not a Western hemisphere trade bloc?

Correct AnswerverifiedShow Answer

________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house.

Correct AnswerverifiedShow Answer

A ________ is a business in which a multinational company owns 100 percent of the stock.

Correct AnswerverifiedShow Answer

Green tea Oreos in China,chocolate and peanut butter Oreos in Indonesia,and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy.

Correct AnswerverifiedShow Answer

The sale of Boeing commercial aircraft and Microsoft operating systems in many countries enables these companies to benefit from

Correct AnswerverifiedShow Answer

In reviewing the Indian software industry and the diamond of national advantage,which of the following is a relatively weak set of factors in the national competitive advantage in this industry?

Correct AnswerverifiedShow Answer

Which of the following describes the most typical order of entry into foreign markets?

Correct AnswerverifiedShow Answer

According to Euromoney's 2017 semi-annual "Country Risk Rating," which one of the following countries has the highest economic risk?

Correct AnswerverifiedShow Answer

In the Porter diamond-of-national-advantage framework,which of the following factors does not affect competitiveness of a nation?

Correct AnswerverifiedShow Answer

A franchise generally expires after a few years,whereas a license is designed to last into perpetuity.

Correct AnswerverifiedShow Answer

Which of the factors below has not made the software services industry in India extremely competitive on a global scale?

Correct AnswerverifiedShow Answer

Canada and Mexico are the same distance from the United States,but trade is higher between the United States and Canada than with Mexico because

Correct AnswerverifiedShow Answer

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Multinational firms are constantly faced with the decision of choosing between adaptation and integration.

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