Deck 10: Internationalization, Relationships and Networks

Question 1

Three modes of entry based on the firm's established position in international networks are international extension, international penetration and international integration.

Answer 1

True

Question 2

In the learning approach to internationalisation firms evaluate and respond to opportunities as they occur regardless of psychic distance.

Answer 2

False

Question 3

Learning approaches to internationalisation recognise that internationalisation is a ________ process.

A)Static
B)Dynamic
C)Concurrent
D)Contingent
E)Linear

Answer 3

B

Question 4

The ________ approach to internationalisation is the only one with the capacity to cater for more advanced forms of international market entry

A)Contingency
B)Stages
C)Learning
D)Network
E)All are able to cater for advanced forms of international entry

Question 5

Which of the following is an example of a network approach to: internationalisation?

A)International integration
B)International extension
C)International penetration
D)All of the above
E)Options A and B only

Question 6

The virtual organisation is a special case of the network approach to internationalisation.

Question 7

A marketing relationship can be characterised as virtual where:

A)A significant amount of activity between relationship partners occurs outside the organisational domains
B)A significant amount of activity between relationship partners is in a non-face-to-face context
C)The management orientation between relationship partners follows a command and control model
D)All of the above
E)Options A and B only

Question 8

A strategic alliance is a linked mode of market entry.

Question 9

Internationalisation can be classified into the following approaches:

A)Stages, commitment, experience, network
B)Stages, commitment, eclectic, network
C)Stages, contingency, network, financial
D)Stages, experience, contingency, global
E)Stages, learning, contingency, network, holistic

Question 10

________ and ________ are examples of sequential approaches to internationalisation.

A)Linear; stages
B)Learning; contingency
C)Contingency; stages
D)Linear; contingency
E)Learning; stages

Question 11

The stages and learning approaches to internationalisation are both examples of a sequential approach to entering an international market.

Question 12

Fletcher's model of international behaviour consists of which three modes of entry into international markets?

A)Outward forms, combined forms, inward forms
B)Outward forms, relationship forms, inward forms
C)Outward forms, linked forms, inward forms
D)Outward forms, central forms, inward forms
E)Outward forms, consolidated forms, inward forms

Question 13

The home country market factors that can influence a firm's decision to internationalise include:

A)Management interest, openness, niches
B)Large size, openness, niches
C)Small size, location, management interest
D)Openness, location, small size
E)Niches, location, experiences

Question 14

Host country market factors that encourage internationalisation include the large size of the market, niche opportunities and openness.

Question 15

The network paradigm emphasises the role of linkages and relationships in the international process.

Question 16

Having a buying agent is an example of an outward mode of market entry.

Question 17

A 'late starter' firm is one which has a considerable amount of international expertise and is therefore likely to experience little difficulty in entering a country's networks.

Question 18

Which of the approaches to internationalisation argues that 'the firm evaluates and responds to an opportunity as it occurs, regardless of whether the market is close in psychic distance terms or whether an advanced mode of entry is required'?

A)Learning approach
B)Contingency approach
C)Concurrent approach
D)Stages approach
E)Network approach

Question 19

Which of the following is an inward form of entry into international markets?

A)Buying agent
B)Co-operative manufacturing
C)Strategic alliance
D)Export agent
E)Franchisor overseas

Question 20

Firms usually internationalise because they wish to:

A) Access factors of production on a more cost-competitive basis
B) Achieve economies of scale in sourcing and production
C) Gain exposure to new ways of doing business
D) All of the above
E) Options A and B only

Question 21

Exchanges in a relationship approach are based on ________ rather than ________.

A)Co-existence; co-operation
B)Co-operation; competition
C)Collaboration; conformity
D)Co-operation; collaboration
E)Collaboration; competition

Question 22

Diaspora is an important feature in business environments because:

A) the path to entering the country of origin may be through the diaspora in another country rather than on a direct basis.
B) it depends on social capital, which creates value and facilitates an individual's commercial activities when crossing national boundaries.
C) interpersonal networks overlap the business networks.
D) the diaspora in one country can be used as agents to get the home products introduced and marketed in another country.
E) all of the above.

Question 23

The common element of relationship marketing and neo-relationship marketing is:

A)Co-production
B)Interdependency
C)Integration
D)Co-location
E)Intercommunication

Question 24

Outline the four key approaches to internationalisation. Give examples of each approach in action.

Question 25

'Activity links' refers to:

A)the flow of goods and services across the network
B)the ability of members of a network to interact on a commercial basis
C)the interpersonal contacts between those involved in partner relationships
D)the financial, commercial, technical and administrative links formed between companies as part of their interactions
E)the exchanges which occur between different network members

Question 26

Residents of one country who have settled in another where they form a distinct group and often display cultural traits deriving from their country of origin are called:

A) residents.
B) guanxi.
C) the diaspora.
D) migrants.
E) all of the above.

Question 27

Why do firms internationalise? Discuss with reference to a firm's internal factors, global factors, host country factors and home country factors.

Question 28

Explain what is meant by the terms outward, inward and linked modes of market entry. How do these different modes interact in practice?

Question 29

Compared to relationships, networks tend to be:

A)Looser arrangements
B)More focussed
C)Tighter arrangements
D)More formalised legal arrangement
E)Smaller in scope

Question 30

In your opinion, is the sequential or non-sequential approach to internationalisation more effective? Justify your answer and give examples of companies that have succeeded using either or both approaches.

Question 31

Reciprocity in relationship marketing refers to the fact that each party is knowledgeable about the other and draws on this information when solving problems.

Question 32

Which of the following is a reason for the increased popularity of strategic alliances in international marketing?

A)Economies of scale
B)Ability to overcome protectionism
C)Reduced R & D costs
D)All of the above
E)Options A and B only

Question 33

Explain the concept of guanxi and why it is important for the development of international marketing relations.

Question 34

Strategic alliances improve international competitiveness by:

A)Lowering costs by focussing on core competencies
B)Introducing products sequentially across multiple markets
C)Focussing on multiple national markets with unique offerings
D)Targeting promotions by creating country specific advertising
E)All of the above

Question 35

Relationship marketing and networks are particularly important when dealing with Asian trade partners. How does relationship marketing link in with relationships?

Question 36

A significant difference between relationship marketing in Western countries and relationship marketing in Asian countries is that in Western countries:

A)Relationships are opportunistic
B)Performance drives relationships
C)Relationships are predominantly driven by non-financial concerns
D)Relationships drive performance
E)The main emphasis is on personal relationships

Question 37

'Atmosphere' in the network model encompasses:

A)Trust, power and dependency
B)Trust, power and commitment
C)Trust, commitment and reciprocity
D)Trust, power and faith
E)Trust, power and reciprocity

Question 38

A key difference between relationship marketing and neo relationship marketing is that neo relationship marketing is based on dyadic relationships.

Question 39

The common element in the linkage between relationship marketing and networks is the interdependence of relationships.

Question 40

The network model involves interdependence between:

A)competitor networks, resource ties, member needs
B)actor bonds, action links, competitor networks
C)activity links, competitor networks, resource ties
D)actor bonds, activity links, resource ties
E)market players, member needs, network ties

Question 41

Guanxi literally means the ________ to ________.

A)Doorway; Relationships
B)Gate; Relationships
C)Doorway; Connections
D)Gate; Connections
E)None of the above

Question 42

A key reason for building international networks is to create the necessary infrastructure for:

A)Consistent international branding
B)Influencing international trade policy
C)Accessing international resources
D)Effective competition in international markets
E)Achieving economies of scale

Question 43

Customer relationship management is important for international firms because they are located close to their customers.

Question 44

Discuss the different bonds or ties that create the interdependence between the different actors of the network model.

Question 45

There has been a growing interest in sustainability because of:

A)Globalisation and advances in information technology
B)Increased competition among firms causing some to use CSR as a market positioning strategy
C)Greater social awareness among customers
D)The increasing importance of citizen-based activities
E)All of the above

Question 46

Guanxi is manifested in:

A)Profit orientation
B)Human obligation
C)Transactional relationships
D)Financial obligation
E)Options A and C only

Question 47

In Guanxi transactions come first followed by relationships.

Question 48

CRM is directly related to networks because:

A)Members of the network provide marketing-related services that help create and satisfy the demand of international customers
B)Members of the networks supply the inputs
C)It involves harnessing the international network in which the firm is embedded to serve the customer
D)All of the above
E)Options A and C only

Question 49

Firms often use international corporate social responsibility as a marketing tool to differentiate themselves in the market.

Question 50

What are the advantages of adopting a network approach to internationalisation? What types of firms are most likely to succeed using this model?

Question 51

Explain how a firm's international corporate social responsibility is influenced by its international networks.

Question 52

'Actors' is NOT one of the components of the network model.

Question 53

In the international marketing context, competition usually occurs between:

A)Actors
B)Conglomerates
C)Companies
D)Brands
E)Networks

Question 54

Discuss how the growth in networks in B2C contexts impacts a firm's approach to international customer relationship management?

Question 55

In the international marketing domain, CRM is a company-wide process that affects decisions relating to pricing, product development, communications, resource allocation and customer support services.

Question 56

Horizontal networks comprise of firms that contribute different expertise to a collaborative venture.

Question 57

International corporate social responsibility is based on the notion that all firms must comply with the environmental laws of their international partner countries.

Question 58

CRM is designed to increase customer satisfaction and:

A)Optimise profit
B)Minimise customer defection
C)Maximise customer contact
D)Reduce customer dissatisfaction
E)Create brand loyalty

Question 59

The three components of the network model are actors, activities and resources.

Question 60

Drivers of guanxi include all of the following EXCEPT:

A)Lack of governance mechanisms
B)Infrastructure shortcomings
C)Collectivism
D)Elitism
E)Information access