Question 1

When an American biotechnology startup establishes an office in Brazil to manage teams of biologists that search the rain forest to find new plants that may have undiscovered medicinal properties, the firm has globalized to

Accepted Answer

The answer of When an American biotechnology startup establishes an...

Question 2

Lee Marine's attempt to extend the product life cycle of older models of its boats by selling them in international markets has not been effective strategy, in part, because

Accepted Answer

With increasing globalization and access to information, customer preferences around the world are becoming more and more similar. Therefore, older models of boats that may have been popular in one market may not necessarily have the same appeal in another market.

Question 3

Crumpton Industries reduced its unit costs when it expanded its productive capacity, indicating that it has benefited from

Accepted Answer

The answer of Crumpton Industries reduced its unit costs when...

Question 4

When it comes to expanding the market, an emerging motivation for going global is to

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The answer of When it comes to expanding the market,...

Question 5

When a business locates a production facility or sales office overseas by purchasing a foreign business from another firm, this is referred to as a _____.

Accepted Answer

Cross-border acquisition refers to the process of a business purchasing a foreign firm and establishing a presence overseas through the acquisition. Greenfield venture involves starting a new business from scratch in a foreign location, outsourcing involves utilizing external vendors for certain business functions, and offshoring involves moving operations to a foreign location.

Question 6

The established motivations behind global expansion include all of the following, except

Accepted Answer

Promoting the independence of the enterprise is not a commonly stated motivation for global expansion. The other three options, gaining access to resources, expanding markets, and cutting costs, are established reasons for companies to expand globally.

Question 7

Recent research has shown that globalizing early in a company's life tends to lead to

Accepted Answer

Recent research has found that companies that begin globalizing early tend to experience higher levels of sales growth compared to those that delay international expansion. This is because early globalizers are able to develop a competitive advantage by leveraging their unique strengths and resources in foreign markets.

Question 8

Long production runs at Bayshore Industries have steadily reduced its unit costs, indicating that it has benefited from

Accepted Answer

Long production runs would result in Bayshore Industries' employees becoming more efficient at their tasks, thus reducing unit costs. This is known as experience curve efficiencies, which occurs when a firm's cumulative output increases, leading to improvements in efficiency and cost reduction. Learning effects (B) refer to the acquisition of new knowledge and skills that improve an employee's performance, whereas economies of scale (C) refer to the cost advantages that a firm experiences as it increases its production scale. Economies of scope (D) refer to the cost savings that arise from producing two or more products or services together. While economies of scale and scope may also play a role in reducing Bayshore's unit costs, the scenario described in the question is most closely related to experience curve efficiencies.

Question 9

When a small business owner is thinking of going global, he or she should first decide whether

Accepted Answer

Before going global, the small business owner must first assess whether the company has the capacity and capabilities to succeed in an international market. This includes considering factors such as the company's resources, expertise, and readiness for the challenges of operating in a new environment. While having financial resources is important, it is not the only determinant of success, and may not be enough if the company is not prepared to manage the complexities of international business.

Question 10

When american businesses access foreign labor by relocating their stateside operations abroad, the practice is called

Accepted Answer

Offshoring is the practice of relocating a company's operations to a foreign country to take advantage of lower labor costs, taxes, and regulations. This often involves hiring foreign workers to fill the jobs that were previously held by domestic workers. Outsourcing refers to hiring a third-party company to handle a specific business process or service, which may or may not involve relocating operations abroad. Exporting and importing refer to the movement of goods and services across international borders.

Question 11

When it comes to gaining access to resources, a traditional motivation for going global has been to

Accepted Answer

Going global to find raw materials has been a traditional motivation for businesses seeking access to resources. By expanding into international markets, businesses can tap into new sources of raw materials or secure more reliable supplies from other countries.

Question 12

It is becoming clear that international markets are demanding

Accepted Answer

International markets often have different cultural, social, and economic characteristics that require products to be tailored to their specific needs and interests. Therefore, companies need to develop differentiated products to satisfy these unique demands in order to succeed in global markets.

Question 13

Salvatore intended from the start that his small pasta firm would sell its products in overseas market, some would say the business

Accepted Answer

The term "born global" refers to a business that is international from its inception and is intended to sell its products or services in overseas markets. This best describes Salvatore's intention for his pasta firm.

Question 14

Because technologies are becoming increasingly sophisticated, expensive, and short-lived,

Accepted Answer

As technologies become more advanced, the costs associated with R&D also increase, making it important to recover those costs quickly by expanding the market globally. This means that companies need to be able to sell their products to as many customers as possible, regardless of where they are in the world.

Question 15

Economies of scale refers to

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The answer of Economies of scale refers to
...

Question 16

Manufacturers or service firms that distribute a second firm's product or service is called a _____.

Accepted Answer

The answer of Manufacturers or service firms that distribute a...

Question 17

Seeking to extend the product life cycle by expanding into international markets has become a less effective strategy, in part, because

Accepted Answer

Customer preferences have become more similar around the world, which means that companies need to customize their products less for different regions and can instead focus on global consistency. This makes expanding into international markets less of a unique strategy and less effective in extending the product life cycle.

Question 18

Prior to the 1990s, startups considered going global

Accepted Answer

Prior to the 1990s, startups considered going global only after they had established a solid position in the domestic market. This was because they wanted to ensure success in their home market before expanding to foreign markets.

Question 19

The major factors that have shaped cultural tastes throughout the world, easing the entry of small businesses into international markets are all of the following except

Accepted Answer

The answer of The major factors that have shaped cultural...

Question 20

Newplant has the most experienced production employees and the lowest unit costs in its industry, indicating that it had benefited from

Accepted Answer

The answer of Newplant has the most experienced production employees...

Quiz 18: Global Marketing