Question 1

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

Accepted Answer

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 conflictE) B) and D)
F) A) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

Accepted Answer

A) True 
 B)False

Question 5

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Accepted Answer

A) True 
 B)False

Question 6

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?

Accepted Answer

A)   South Africa and Russia
B)   Singapore and China
C)   Argentina and Bahrain
D)   Kazakhstan and ColombiaE) All of the above
F) A) and B)

Question 7

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road productthat appeals to the largest number of consumers in every market.

Accepted Answer

A) True 
 B)False

Question 8

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

Question 9

When the U.S. dollar appreciates against other currencies, U.S. goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.

Accepted Answer

A)   less expensive, positive
B)   more expensive, negative
C)   less expensive, negative
D)   more expensive, positiveE) B) and C)
F) B) and D)

Question 10

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 11

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Accepted Answer

A)   Joint ventures
B)   Strategic alliances
C)   Licensing agreements
D)   Wholly owned subsidiariesE) A) and C)
F) None of the above

Question 12

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)   amultidomestic
C)   a single country
D)   a transnationalE) B) and C)
F) C) and D)

Question 13

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

Accepted Answer

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)

Question 14

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) C) and D)
F) All of the above

Question 15

Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008. Just one year later, Russian Prime Minister Vladimir Putin threatened to dilutethe Renault ownership stake unless it contributed more money to prop up AvtoVAZ, which was then experiencing a significant slide in sales. This is an example of ________ risk.

Accepted Answer

A)   currency
B)   economic
C)   political
D)   managementE) A) and C)
F) A) and D)

Question 16

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Accepted Answer

A)   Consumers are willing to pay more for specific product features.
B)   Customer needs and interests are becoming more dissimilar.
C)   MNCs can successfully compete globally by aggressively pricing products at the sacrifice of product features.
D)   If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.E) A) and D)
F) None of the above

Question 17

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n)  ________ of living standards across the globe and is changing the face of business.

Accepted Answer

A)   divergence
B)   convergence
C)   expansion
D)   contractionE) B) and C)
F) None of the above

Question 18

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

Question 19

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Accepted Answer

A)   Asia.
B)   South America.
C)   the United States.
D)   Africa.E) All of the above
F) None of the above

Question 20

Which one of the following is nota strength of transnational strategies?

Accepted Answer

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

Exam 7: International Strategy Creating Value in Global Markets

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

Correct Answer
verified

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

Correct Answer
verified

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Correct Answer
verified

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

Correct Answer
verified

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

Correct Answer
verified

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ________ of living standards across the globe and is changing the face of business.

Correct Answer
verified

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

Correct Answer
verified

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road productthat appeals to the largest number of consumers in every market.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Correct Answer
verified

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

Correct Answer
verified

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?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Correct Answer
verified

When the U.S. dollar appreciates against other currencies, U.S. goods can be to consumers in foreign countries but can have implications for American companies with branch operations overseas.

Correct Answer
verified

Which one of the following is nota strength of transnational strategies?

Correct Answer
verified

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 Answer
verified

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Correct Answer
verified

Exam 7: International Strategy Creating Value in Global Markets

Reverse innovation occurs when a company develops a product that meets the needs of a developed country and then adapts it to the needs of the developing country.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?

Correct AnswerverifiedShow Answer

The need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy.

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

Statistics indicate that over half of the world output now comes from emerging markets. This is leading to a(n) ________ of living standards across the globe and is changing the face of business.

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

A multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle-of-the-road productthat appeals to the largest number of consumers in every market.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Shared Spanish colonialism is one reason that explains regionalism tendencies in

Correct AnswerverifiedShow Answer

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

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 highest country economic risk?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase.

Correct AnswerverifiedShow Answer

When the U.S. dollar appreciates against other currencies, U.S. goods can be ________ to consumers in foreign countries but can have ________ implications for American companies with branch operations overseas.

Correct AnswerverifiedShow Answer

Which one of the following is nota strength of transnational strategies?

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

________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

When the U.S. dollar appreciates against other currencies, U.S. goods can be to consumers in foreign countries but can have implications for American companies with branch operations overseas.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified