Question 1

_____ is the degree to which the company's existing practices, resources and capabilities fit the new market.

Accepted Answer

Corporate fit refers to how well a company's current operations, resources, and capabilities align with the demands and opportunities of a new market, ensuring that the company can effectively enter and compete in that market.

Question 2

One disadvantage of partnering is the possibility that the partner's goals differ from the firm's goals.

Accepted Answer

Partnering can lead to conflicts if the goals and objectives of the partners diverge, potentially hindering the achievement of the firm's strategic goals.

Question 3

Acquisitions are appealing because they give the company quick, established access to a new market.

Accepted Answer

Acquisitions allow a company to quickly enter a new market by obtaining an established business that already has a customer base, market knowledge, and operational capabilities, rather than building these from scratch.

Question 4

Government policies on foreign-trade regulation and taxation constitute the _____ factors that have a significant influence on business.

Accepted Answer

Government policies on foreign-trade regulation and taxation are considered political factors because they are determined by the government and have a significant impact on the business environment and operations.

Question 5

Which of the following questions would help an organization determine the favorability of the technological factors for business expansion in a PESTEL analysis?

Accepted Answer

Intellectual property issues are a technological factor in PESTEL analysis, as they affect innovation, technology transfer, and the protection of technological advancements.

Question 6

A greenfield venture has the most potential to provide above-average returns.

Accepted Answer

A greenfield venture, being a form of direct investment in a new operation in a foreign country, often offers significant growth opportunities and the potential for above-average returns due to less competition and the ability to establish a strong market presence from the start.

Question 7

_____ occurs when a company contracts with a third party to do some work on its behalf.

Accepted Answer

Outsourcing occurs when a company hires an external organization to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.

Question 8

Which of the following questions would help an organization determine the favorability of the environmental factors for business expansion in a PESTEL analysis?

Accepted Answer

D) What are the regulations regarding waste disposal and energy consumption? - This question directly relates to the Environmental aspect of PESTEL analysis, focusing on how environmental regulations could impact business operations, particularly in terms of waste disposal and energy consumption practices.

Question 9

Which of the following questions would help an organization determine the favorability of the legal factors for business expansion in a PESTEL analysis?

Accepted Answer

The answer of Which of the following questions would help...

Question 10

_____ involves analyzing markets for their potential size, accessibility, cost of operations, and buyer needs and practices to aid the company in deciding whether to invest in entering that market.

Accepted Answer

Market due diligence involves the process of analyzing markets for factors such as potential size, accessibility, cost of operations, and buyer needs and practices. This is crucial for a company to decide whether it is worthwhile to invest in entering a new market.

Question 11

Acquisition is a bad strategy when an industry is consolidating.

Accepted Answer

Acquisition can be a strategic move during industry consolidation, allowing companies to quickly gain market share, eliminate competition, and achieve economies of scale.

Question 12

_____ is a widely used tool that helps show the big picture of a firm's external environment, particularly as related to foreign markets.

Accepted Answer

PESTEL analysis is a tool used to analyze and monitor the macro-environmental factors that may have a profound impact on an organization's performance. It stands for Political, Economic, Social, Technological, Environmental, and Legal factors. This analysis helps businesses understand the bigger picture of the environment they operate in, especially when considering expansion or operations in foreign markets.

Question 13

The process of acquisition affords the firm maximum control and has the most potential to provide above-average returns.

Accepted Answer

The answer of The process of acquisition affords the firm...

Question 14

_____ occurs when a function is taken out of one's country of residence to be performed in another country, generally at a lower cost.

Accepted Answer

Offshoring refers to the practice of moving a business process or function from one country to another, typically to leverage cost advantages.

Question 15

Companies employ _____ to understand the latent, unarticulated needs of local consumers.

Accepted Answer

Ethnographers are employed by companies to understand the latent, unarticulated needs of local consumers through the study of cultures and behaviors in their natural context.

Question 16

Local lifestyle trends, the dominant religions, views toward leisure time, and the age and lifespan demographics constitute the _____ factors that significantly influence business.

Accepted Answer

Sociocultural factors significantly influence business as they encompass local lifestyle trends, dominant religions, views toward leisure time, and age and lifespan demographics. These elements affect consumer behavior and preferences, which businesses must understand and adapt to in order to succeed.

Question 17

Which of the following questions would help an organization determine the favorability of the sociocultural factors for business expansion in a PESTEL analysis?

Accepted Answer

Sociocultural factors in a PESTEL analysis include societal attitudes, cultural norms, and social trends. The activities of international activist groups can influence public perception and societal attitudes, which are relevant to sociocultural factors.

Question 18

_____ involves the sale of products or services in one country that are sourced in another country.

Accepted Answer

Importing involves the purchase and sale of goods or services from another country to be used in the buyer's country, which matches the description given.

Question 19

"_____" refers to the presence of and adherence to laws related to business contracts.

Accepted Answer

The "Rule of law" refers to the principle that all members of a society (including those in government) are equally subject to publicly disclosed legal codes and processes. In the context of business, it implies that there is a legal framework governing contracts and that parties must adhere to this framework, ensuring fairness and predictability in commercial transactions.

Question 20

If the acquiring firm is in a country with a strong currency, acquisitions becomes expensive for the acquiring firm.

Accepted Answer

When the acquiring firm is in a country with a strong currency, acquisitions in countries with weaker currencies become less expensive because the strong currency has more purchasing power.

Quiz 8: International Expansion and Global Market Opportunity Assessment