1. In a diversification strategy for international expansion, a company would move ________.
rapidly into many foreign countries, and then gradually increase its presence in those countries
rapidly into a few foreign countries with many of its products and most of its resources
into one foreign country and fully expand its product lines in that country before moving to another country
move quickly into a regional foreign market but build up its resources in only a few of the countries in the region
2. Which of the following is NOT among the five forces in the Five-Forces Model of Industry Structure?
potential new entrants
suppliers of raw materials
3. The major use of the matrix as a tool in international location strategy is to ________.
pinpoint acceptable and unacceptable characteristics of countries
show the relative placement of countries in terms of the attributes shown on two axes
rank countries on the basis of expected investment return
show the degree of certainty for different projected returns on investment
4. Which of the following is an external influence on international business managers?
production plant locations
host country monetary policy
supply chain linkages
product design standards
5. The industry organization (IO) paradigm reports that, on average, the best predictor of firm strategy is the ________.
company’s stockpile of assets, skills, and capabilities
aggressiveness of a company’s objectives
consistency among a company’s structure, systems, and processes
structure of the industry in which it competes
6. A company should use a concentration strategy for international expansion when there are ________.
high needs for product adaptation, low growth and sales stability in each market, and high economies of scale in distribution
low economies of scale in distribution, increasing sales response function, and low spillover effects
high growth and sales stability in each market, long competitive lead time, and low spillover effects
low needs for product and communications adaptation, short competitive lead time, and low program control requirements
7. Market-share increase and turnover ratios are examples of ________.
nonfinancial evaluation metrics
financial evaluation metrics
cost and accounting metrics
enterprise resource planning (ERP)
8. Most MNEs keep two sets of books, one to comply with ________ and another to comply with ________.
host-country principles; supply requirements
home-country principles; market requirements
employee requirements; customer requirements
international principles; local principles
9. Increasing globalization is a powerful force of change for competition in an industry because ________.
it increases rivalry among companies in the industry
foreign competitors typically have cheaper, higher quality products
it makes innovation partners more predictable
it requires companies to have low costs in order to compete
10. Which of the following is NOT a means for companies to gradually deepen their international commitments?
going first to countries dissimilar to their home countries, but using intermediaries to handle foreign operations
beginning by making a wholly owned foreign direct investment in a country dissimilar to their home country
entering foreign countries one at a time
initially limiting foreign functional responsibility by exporting rather than producing abroad