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| 1 | |
Which factor in the diamond of national advantage is exemplified by the development of just-in-time inventory management by Japanese companies who lacked available physical land space for warehousing?
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| | A) | demand conditions
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| | B) | related and supporting industries
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| | C) | firm strategy, structure, and rivalry
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| | D) | factor endowments
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| 2 | |
What benefit of international expansion motivates a firm to locate its call centers in India, its manufacturing plants in China, and its R&D in Europe, where specific personnel talents may be available at the lowest price?
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| | A) | extending a product life cycle
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| | B) | applying arbitrage
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| | C) | avoiding arbitrage
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| | D) | shortening a product life cycle
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| 3 | |
Which of the following forms of risk makes it difficult for foreign firms to conduct business, when there is an absence of rules or a lack of uniform enforcement of existing rules that leads to inconsistent and arbitrary government decisions?
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| | A) | economic
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| | B) | political
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| | C) | currency
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| | D) | management
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| 4 | |
As an alternative to offshoring technology services, many companies are considering which of the following alternative solutions that may overcome the pitfalls of offshoring?
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| | A) | increased homogeneity of offerings
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| | B) | eliminating customer service functions
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| | C) | moving production facilities to foreign soil
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| | D) | rural outsourcing in the US
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| 5 | |
One of marketing strategist Theodore Levitt's assumptions in support of global products and brands was that people around the world are not willing to sacrifice preferences in product features, functions, and design for lower prices and high quality.
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| | A) | True
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| | B) | False
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| 6 | |
In choosing optimal locations for operations under the ________ strategy for expanding into global markets, managers must realize that location alone cannot guarantee that the quality and cost of factor inputs will be optimal unless potential weaknesses of the locations are managed.
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| | A) | global
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| | B) | transnational
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| | C) | international
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| | D) | multidomestic
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| 7 | |
According to a study by Rugman and Verbeke, few of the world's largest firms today can be considered completely global in terms of sales.
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| | A) | True
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| | B) | False
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| 8 | |
When expanding internationally, licensing offers a firm a lower investment and risk, and degree of ownership and control than does a joint venture.
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| | A) | True
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| | B) | False
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| 9 | |
In considering countries with weak laws protecting intellectual property, which of the following entry modes for international expansion would be the best choice?
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| | A) | exporting
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| | B) | strategic alliance
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| | C) | wholly owned subsidiary
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| | D) | licensing
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| 10 | |
The risks associated with using a wholly owned subsidiary for expansion can be lessened by hiring local talent.
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| | A) | True
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| | B) | False
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