Question 1

Managers also need to take into consideration the macroeconomic factors that will have near-term and long-term effects on the success of their strategy.

Accepted Answer

Macroeconomic factors such as inflation, interest rates, economic growth, and unemployment rates can significantly impact a company's performance and the effectiveness of its strategies, necessitating their consideration in both short-term and long-term planning.

Question 2

Product differentiation plays a critical role for companies entering a new market.

Accepted Answer

Product differentiation helps a company stand out in a new market by offering unique features, benefits, or value propositions that distinguish its products from those of competitors, thereby attracting customers and gaining a competitive edge.

Question 3

Political factors are irrelevant as far as consumer confidence, consumer, and business spending is concerned.

Accepted Answer

Political factors can significantly influence consumer confidence and spending behaviors, as well as business investment decisions, due to their impact on economic policies, regulatory environments, and overall stability.

Question 4

A PESTEL analysis helps managers gain a better understanding of the opportunities and threats they face.

Accepted Answer

A PESTEL analysis examines the Political, Economic, Social, Technological, Environmental, and Legal factors that can affect an organization, helping managers understand external opportunities and threats.

Question 5

When transportation costs and automation are both high, then the knowledge worker component of the location calculation becomes more important.

Accepted Answer

The answer of When transportation costs and automation are both...

Question 6

The rate of industry change remains relatively the same from one industry to the next in one financial year.

Accepted Answer

The rate of industry change varies significantly from one industry to the next due to factors such as technological advancements, regulatory changes, consumer preferences, and competitive dynamics.

Question 7

The factors mentioned in the PESTEL framework are inter-related.

Accepted Answer

The factors in the PESTEL framework, which stands for Political, Economic, Social, Technological, Environmental, and Legal, are inter-related because changes in one area can influence and be influenced by changes in the others, reflecting the complex nature of the business environment.

Question 8

The more similar markets in different regions are, the lesser the pressure for an industry to globalize.

Accepted Answer

When markets in different regions are similar, there is more pressure for an industry to globalize because companies can leverage similar strategies and products across these markets, achieving economies of scale and competitive advantage.

Question 9

Home-market norms tend to remain the same over time irrespective of the shifting demographics due to immigration or aging populations.

Accepted Answer

Home-market norms often change over time as shifting demographics, such as immigration or aging populations, can significantly influence consumer preferences, cultural norms, and economic conditions, leading to changes in market demands and practices.

Question 10

An organization, when it is expanding in a foreign country, enters it through a domestic partner.This would improve the chances of success for the organization.

Accepted Answer

Partnering with a domestic company in a foreign country can provide valuable local knowledge, cultural insights, and established networks, improving the chances of success for the expanding organization.

Question 11

Firms are more likely to be successful when they exploit a change in the environment rather than simply survive or oppose the change.

Accepted Answer

Firms that adapt to and exploit changes in the environment are more likely to innovate, capture new opportunities, and stay ahead of competition, leading to greater success.

Question 12

The business competence of an organization renders concepts like political stability and legal security irrelevant.

Accepted Answer

Political stability and legal security are external factors that significantly impact an organization's operations, risk management, and strategic planning, regardless of its business competence.

Question 13

In a truly global industry, the core product is standardized, the marketing approach is relatively uniform, and competitive strategies are integrated in different international markets.

Accepted Answer

In a truly global industry, companies often standardize their core product to leverage economies of scale, adopt a relatively uniform marketing approach to maintain brand consistency, and integrate competitive strategies across different international markets to optimize their global presence and efficiency.

Question 14

When an organization plans to expand in a foreign country, it needs to understand what the local consumers look for when making a purchase decision.

Accepted Answer

Understanding local consumer preferences is crucial for an organization planning to expand in a foreign country to tailor its products, marketing strategies, and operations to meet the specific needs and expectations of the local market.

Question 15

The rate of change is the same across industries for instance, the computer industry changes as fast as the steel industry.

Accepted Answer

Different industries experience rates of change at varying speeds due to factors like technological advancements, regulatory changes, and market demands. The computer industry, for example, evolves much faster than the steel industry due to rapid technological innovations.

Question 16

Market due diligence relies on published research on the markets rather than interviews with potential customers and industry experts.

Accepted Answer

Market due diligence involves a comprehensive analysis that includes both reviewing published research and conducting interviews with potential customers, industry experts, and other stakeholders to gain a deep understanding of the market dynamics, trends, and customer needs.

Question 17

The Internet has made exporting easier as even small firms can access critical information about foreign markets, examine a target market, research the competition, and create lists of potential customers.

Accepted Answer

The Internet provides a wealth of information and tools that allow small firms to research foreign markets, understand competition, and identify potential customers, making the process of exporting more accessible and manageable.

Question 18

The advantage of exporting is that firms avoid the expense of establishing operations in the new country.

Accepted Answer

Exporting allows firms to enter foreign markets without the significant investment required for establishing local manufacturing or operations, thus avoiding those expenses.

Question 19

Currency exchange rates do not have an impact on firms, because the cost of exporting is lower than that of the other entry modes.

Accepted Answer

Currency exchange rates significantly impact firms by affecting the cost of exporting and importing goods and services, investment decisions, and overall financial performance, regardless of the comparison with other entry modes.

Question 20

An organization, when it is planning to expand in a foreign country, needs to view the country as a monolith.

Accepted Answer

Expanding into a foreign country requires understanding the diverse cultural, economic, and legal nuances within that country, rather than viewing it as a uniform entity.

Quiz 8: International Expansion and Global Market Opportunity Assessment