Deck 7: Selecting International Markets

Question 1

Morris is a sales manager for organizational software firm Cleveco. In checking his e-mail he notes an inquiry from a firm in Dubai. His resultant sale in this market reflects a ______________________,___________________________ motive for internationalization.

A) reactive, external
B) reactive, internal
C) proactive, internal
D) proactive, external

Answer 1

A

Question 2

According to the Uppsala model of internationalization,firms first enter markets ______________________________________.

A) that are psychically close to their home base
B) that are geographically close to their home base
C) without regard to the psychic distance of the market from the home base
D) without regard to psychic or geographic distance

Answer 2

A

Question 3

During the maturity stage of the IPLC,______________________________________________________________.

A) American firms experience competition primarily from developing countries
B) products become more of a commodity and lose much of their competitive advantage
C) American firms can retain their foreign market positions via exporting
D) foreign competitors experience difficulty producing the American product

Answer 3

B
Explanation: In the maturity stage, American firms experience competition from both developed and developing countries, making this response in.

Question 4

In the Ansoff matrix,only a market development strategy can pertain to internationalization.

Question 5

One critique of Vernon's IPLC model is that competitors are able to imitate products more rapidly than the model presumes.

Question 6

When Glove-Tex,a producer of protective rubber gloves,purchases a rubber plantation in Malaysia,it exhibits a ______________-seeking motive for internationalization.

A) strategic resource
B) distribution
C) resource
D) market

Question 7

When a firm makes a strategic decision to enter foreign markets and adapt to international environments,_____________________ has occurred.

A) internationalization
B) globalization
C) standardization
D) market selection

Question 8

Of the four Ansoff expansion strategies,the one representing the least risk is ____________________________.

A) market development
B) diversification
C) product development
D) market penetration

Question 9

Market,resource,efficiency and strategic resource-seeking comprise the four categories of __________________________.

A) product development
B) diversification
C) reactive internationalization motives
D) proactive internationalization motives

Question 10

The Roving Export Managers (ROV)deployed by the Israel Export Institute represent a change agent associated with strategic resources.

Question 11

Removal of export barriers,but not investment barriers,serves as a motive for internationalization.

Question 12

The first stage in the International Product Life Cycle model involves ________________________________.

A) establishing manufacturing facilities in foreign markets
B) licensing production technology
C) exporting products specifically designed for foreign markets
D) exporting domestically-produced goods designed for the home market

Question 13

When the benefits of internalization outweigh its costs,________________________ occurs.

A) foreign direct investment
B) licensing
C) franchising
D) contract manufacturing

Question 14

Roto-molder Inpack Corporation purchased Innovate Technologies,holder of a patent for a quick-change mold adapter. Through its acquisition,Inpack is seeking __________________________.

A) new markets
B) strategic resources
C) resources
D) raw materials

Question 15

Tactics such as implementing more aggressive advertising and price discounts are associated with ____________________________.

A) product development
B) diversification
C) market penetration
D) market development

Question 16

When management believes that there are firm-specific assets that can be exploited abroad,they will act on the basis of ___________________.

A) inactive
B) active
C) proactive
D) reactive

Question 17

After a firm decides it will expand internationally,its next step is to _____________________________________.

A) hire a global sales force
B) locate specific market opportunities
C) decide which entry mode to utilized
D) determine the expansion strategy

Question 18

Efficiency-seekers are usually firms that have been already established abroad.

Question 19

Generally speaking,the cost of information acquisition in foreign markets is far more expensive than acquiring information in internal markets.

Question 20

The idea that foreign entrants will employ the strategy needing the least product adaptation is called similitude.

Question 21

When Hussein participates in a U.S.Department of commerce trade mission to identify new distributors in Singapore,his travel and lodging are considered ________________________ costs.

A) search and information
B) bargaining
C) governance
D) monitoring

Question 22

According to transaction cost theory,a firm will tend to _____________________ when transaction costs are ______________.

A) produce abroad, low
B) export, low
C) export, high
D) exit the foreign market, high

Question 23

When RCA sold its proprietary technology for the product of color televisions to Japanese companies,______________________ was realized.

A) monitoring risk
B) trademark risk
C) production risk
D) dissemination risk

Question 24

Golda is finalizing a distributor agreement with a new partner in Costa Rica. Her attorneys have submitted an invoice for their work on the contract. Golda has incurred a(n)_____________________________ cost.

A) search and information
B) monitoring
C) governance
D) bargaining

Question 25

In the OLI model,ownership benefits derive from monopolistic advantages such as economies of scale and managerial experience.

Question 26

The Boston Consulting Group matrix is more appropriate for selecting countries for market entry.

Question 27

Colleen has determined that the four most critical elements of market demand for wallpaper include age of housing stock,number of homes owned,savings rate,and overall economic indicators. She uses these factors to construct a grid determining potential for wallpaper purchases in several countries. She has created a(n)___________________.

A) APG grid
B) quadrant analysis
C) multiple factor index
D) OLI grid

Question 28

All of these scenarios represent options for network formation except ______________________.

A) creating new relations to actors in networks
B) using existing contacts in order to connect to new networks
C) exploiting existing relationships in current networks
D) creating new networks in the country of expansion

Question 29

The Uppsala model theorizes that firms internationalize by progressing through a series of stages based upon _________________.

A) geographic proximity
B) government incentives
C) experiential learning and commitment of resources
D) level of domestic sales

Question 30

By what motives was the 'born global' firm Infomedia driven to internationalize?

A) External, reactive.
B) Internal, proactive.
C) Internal, reactive.
D) External, reactive.

Question 31

Raw material availability and a well-developed transportation system are examples of ___________________ advantages according to OLI.

A) location
B) ownership
C) internalization
D) network

Question 32

Protection of property rights and assurance of quality control are examples of ______________________ advantages.

A) both transactional and location
B) transactional
C) internalization
D) location

Question 33

Dissemination risk occurs when control over an asset such as a brand name,patent or knowledge is high.

Question 34

The cost of making an economic exchange is known as a(n)___________________________.

A) transaction cost
B) change cost
C) economic cost
D) cost of doing business

Question 35

SMEs with limited resources and limited competition may find a concentration market strategy preferable.

Question 36

A central point in Network Theory is that the different processes within a company cannot be explained without analyzing the company's method of internationalization.

Question 37

Dunning's OLI model suggests three conditions are drivers of foreign market entry mode,including _______________________,________________________ and ______________________.

A) ownership, licensing, investment
B) ownership, location, internalization
C) observing, locating, investigating
D) ownership, location, investment

Question 38

Global business relationships in which contracts and customers are highly interdependent are ___________________ -based.

A) market
B) network
C) competitor
D) supplier

Question 39

The selection of one or a relatively few countries with the objective of intensive market penetration is known as a ________________ strategy.

A) concentration
B) single market
C) diversification
D) competition

Question 40

Mattson and Hertz postulate that international networks are governed by the market rather than by exchange relationships.

Question 41

The calculation that relates the value of investment in marketing to the revenue generated is known as the ________________.

A) sales response function
B) transaction cost analysis
C) BCG model
D) multiple factor model