Question 1

______________________ occurs when a firm makes a strategic decision to enter foreign markets and adapts its operations to international environments by committing both tangible and intangible assets, experiential knowledge, learning, and human resources to this effort.

A) Internationalization
B) Strategic management
C) Transnationalism
D) Globalization
E) Externalization

A

Accepted Answer

Internationalization refers to the process where firms adapt their operations and strategies to international markets, involving a commitment of resources, knowledge, and personnel to expand globally.

Question 2

The Ansoff matrix presents a number of strategies. The &#34;penetration&#34; strategy describes when the firm decides to focus on ________________.&#10;A) present markets/new products&#10;B) present markets/present products&#10;C) new markets/present products&#10;D) new markets/new products&#10;E) diversifications through acquisition

Accepted Answer

The "penetration" strategy in the Ansoff matrix focuses on increasing market share within existing markets using existing products. This involves strategies such as price adjustments, promotions, and increased distribution to penetrate the market more deeply.

Question 3

The unsolicited order that triggers a firm to investigate international markets is a(n) __________.&#10;A) proactive, internal motive&#10;B) proactive, external motive&#10;C) reactive, external motive&#10;D) reactive, internal motive&#10;E) activation motive

Accepted Answer

The unsolicited order that triggers a firm to investigate international markets is considered a reactive, external motive. This is because the firm is responding (reactive) to an external event (an unsolicited order from an international market) rather than proactively seeking out international opportunities on its own initiative.

Question 4

Dunning's Eclectic OLI model posited that entry mode decisions are based on three conditions or advantages, which are __________________________________________.&#10;A) operations, location, and internationalization&#10;B) operations, logistics, and internationalization&#10;C) ownership, location, and integration&#10;D) ownership, location, and internalization&#10;E) ownership, logistics, and integration

Accepted Answer

Dunning's Eclectic OLI model suggests that firms will engage in international production when they have Ownership advantages, Location advantages, and Internalization advantages.

Question 5

Which of the following is incorrect about the Uppsala model?&#10;A) Fourth stage involves establishing a manufacturing subsidiary.&#10;B) Third stage involves organizing a foreign sales subsidiary.&#10;C) Second stage has regular exporting activity.&#10;D) First stage has only sporadic exports, mostly unsolicited.&#10;E) Pre-take-off comprises soliciting venture capital.

Accepted Answer

The Uppsala model, which describes the internationalization process of firms, does not include a "pre-take-off" phase involving soliciting venture capital. This model primarily focuses on the gradual increase in international involvement through stages, starting from no regular export activities to establishing foreign subsidiaries.

Question 6

Because many small companies do not have infinite resources, ___________________ is (are) seen as an important international strategy.&#10;A) network collaborations&#10;B) government assistance&#10;C) access to foreign capital&#10;D) export management consulting firms&#10;E) developing in-house expertise

Accepted Answer

Network collaborations allow small companies to pool resources and share risks, making it a viable strategy for international expansion without requiring infinite resources.

Question 7

Transaction cost analysis is the cost of making an economic exchange. Which of these are NOT considered to be transactions costs?&#10;A) search costs&#10;B) inventory costs&#10;C) information costs&#10;D) bargaining costs&#10;E) monitoring costs

Accepted Answer

Inventory costs are not considered transaction costs because they relate to holding or managing inventory, not the costs associated with the process of making an economic exchange. Transaction costs typically include expenses like search and information costs, bargaining, and monitoring costs, which are directly related to the process of finding, negotiating, and ensuring compliance in a transaction.

Question 8

The Linkage-Leverage-Learning Model emphasizes linking to foreign partners and _______________ may greatly improve a firm's market position at home.&#10;A) acquiring smaller firms in foreign markets&#10;B) listing new public offerings in foreign stock markets or exchanges&#10;C) building corporate capabilities by exploring external assets&#10;D) relying on infant industry tariffs&#10;E) developing a multinational board of directors

Accepted Answer

The Linkage-Leverage-Learning Model suggests that by linking to foreign partners and building corporate capabilities through the exploration of external assets, a firm can significantly enhance its market position domestically. This approach emphasizes leveraging external resources and knowledge to improve competitiveness and capabilities.

Question 9

The term &#34;born globals&#34; refers to:&#10;A) expatriates whose native country is not the home country.&#10;B) newly formed subsidiaries of multinational firms.&#10;C) products licensed from foreign companies for use in the home country.&#10;D) small and medium enterprises that are becoming international shortly after founding.&#10;E) replicating products coming off patent protection from foreign countries that are new to the domestic market.

Accepted Answer

Born globals are small and medium enterprises (SMEs) that start to venture into international markets very soon after their establishment, without following the traditional gradual path to globalization.

Question 10

As one of the two parameters in accounting for internationalization processes, speed is ____________.&#10;A) the time to market of international new product development&#10;B) the rate at which a firm gathers sufficient capital to fund international operations&#10;C) the rate of international inventory turnovers&#10;D) the rate of the entrance of a firm's competitors into the market where the firm has a first mover advantage&#10;E) the time-based measure representing how fast a firm develops outlets abroad

Accepted Answer

Speed in the context of internationalization processes refers to how quickly a firm can establish its presence in foreign markets, which is represented by the time it takes to develop outlets abroad.

Question 11

Provide examples of firms pursuing each of the four ways firms can expand their businesses using the Ansoff approaches: Market Penetration, Market Development, Product Development, and Product/Market Diversification.

Accepted Answer

The answer of Provide examples of firms pursuing each of...

Question 12

One of the basic characteristics of international, as opposed to domestic, expansion is the degree complexity in international operations. What are some of the elements of the complexity?

Accepted Answer

The answer of One of the basic characteristics of international,...

Deck 8: International Market Planning