Question 1

The lower the value of firm-specific resources and capabilities such as________ the more likely firms will aggressively leverage them overseas.
a. Tangible assets
b. Know-how
c. Software
d. All of the above
e. None of the above

Accepted Answer

The answer of The lower the value of firm-specific resources...

Question 2

Non-equity modes of entry typically involve:
a. Exports and contractual agreements.
b. Larger, harder-to-reverse commitments.
c. Establishing independent organizations overseas.
d. Joint ventures (JVs).
e. Wholly owned subsidiaries.

Accepted Answer

The answer of Non-equity modes of entry typically involve:
a. Exports...

Question 3

The differences in formal and informal institutions that govern the rules of the game in different countries include _______ differences.
a. Regulatory
b. Language
c. Cultural
d. All of the above
e. None of the above

Accepted Answer

The answer of The differences in formal and informal institutions...

Question 4

Late mover advantages do not include:
a. Taking a free ride on first movers' investments.
b. Joining the game with massive firepower when some of the uncertainties are removed.
c. Preempting scarce assets.
d. Taking advantage of first movers' inflexibility by leapfrogging over them.
e. Choice of Strategy.

Accepted Answer

The answer of Late mover advantages do not include:
a. Taking...

Question 5

Greenfield operations refers to:
a. Licensing/franchising.
b. Turnkey projects.
c. R&D contracts.
d. Co marketing.
e. Wholly owned subsidiaries.

Accepted Answer

The answer of Greenfield operations refers to:
a. Licensing/franchising.
b. Turnkey projects.
c....

Question 6

As firms expand into more countries, they should recognize:
a. Foreign firms are still often discriminated against.
b. Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness.
c. Foreign firms are able to offset the liability of foreignness and still have some competitive advantage.
d. All of the above.
e. None of the above.

Accepted Answer

The answer of As firms expand into more countries, they...

Question 7

Organizing firm-specific resources and capabilities as a bundle:
a. Favors firms with strong complementary assets.
b. Prevents having assets integrated s a system.
c. Discourages using them overseas.
d. Is counterproductive.
e. Occurs only in domestic markets.

Accepted Answer

The answer of Organizing firm-specific resources and capabilities as a...

Question 8

Which of the following are not regulatory risks?
a. An obsolescing bargain.
b. Deals that have been struck by MNEs and host governments.
c. Nationalization.
d. Recent trends among host governments regarding their relationships with MNEs.
e. B and C above.

Accepted Answer

The answer of Which of the following are not regulatory...

Question 9

Institutional Distance involves all of the following except that which is:
a. Regulatory.
b. Normative.
c. Cognitive.
d. Cultural.
e. B and C above.

Accepted Answer

The answer of Institutional Distance involves all of the following...

Question 10

Small-scale entries normally benefit by their:
a. Focus on accumulating experience.
b. Emphasis on "learning by doing."
c. Strong strategic commitment.
d. First mover advantages.
e. A and B above.

Accepted Answer

The answer of Small-scale entries normally benefit by their:
a. Focus...

Question 11

Selling the rights to intellectual property for a royalty fee is involved in:
a. Licensing/franchising.
b. Turnkey projects.
c. R&D contracts.
d. Comarketing.
e. All of the above.

Accepted Answer

The answer of Selling the rights to intellectual property for...

Question 12

Large-scale entries do which of the following?
a. Benefit from a strategic commitment.
b. Assure local customers and suppliers.
c. Deter potential entrants.
d. A and B above.
e. All of the above.

Accepted Answer

The answer of Large-scale entries do which of the following?
a....

Question 13

The strategic goal of __________ involves going after countries that offer the highest price.
a. Natural resources-seeking
b. Market-seeking
c. Efficiency-seeking
d. Innovation-seeking
e. Profit-seeking

Accepted Answer

The answer of The strategic goal of __________ involves going...

Question 14

Firms may choose not to enter certain countries if:
a. They possess rare firm-specific assets.
b. The transaction costs are be too low.
c. There are dissemination risks.
d. There is an authorized diffusion of firm-specific assets.
e. All of the above.

Accepted Answer

The answer of Firms may choose not to enter certain...

Question 15

First mover advantages do not include:
a. Developing proprietary, technological leadership.
b. Preempting scarce assets.
c. Establishing entry barriers.
d. Successful clashes with dominant firms in domestic markets.
e. Creating good relationships with key stakeholders.

Accepted Answer

The answer of First mover advantages do not include:
a. Developing...

Question 16

All of the follow are true of direct exports except:
a. Most basic mode of entry.
b. Capitalizes on economies of scale in production concentrated in the home country.
c. Affords better control over distribution.
d. The agendas and objectives of the intermediaries and exporters are the same.
e. Designs and productions geared for the domestic market first and foremost.

Accepted Answer

The answer of All of the follow are true of...

Question 17

Which of the following is not a location specific advantage?
a. Agglomeration.
b. Knowledge spillovers.
c. A skilled labor force.
d. A pool of specialized suppliers and buyers.
e. All of the above are location advantages.

Accepted Answer

The answer of Which of the following is not a...

Question 18

Which of the following exemplify trade barriers?
a. Tariffs.
b. Local content requirements.
c. Restrictions on certain entry modes.
d. A and C above.
e. All of the above.

Accepted Answer

The answer of Which of the following exemplify trade barriers?
a....

Question 19

Which is not true of joint ventures?
a. They are jointly owned by two or more parent companies.
b. They share risks with local partners.
c. They gain access o the local partner's knowledge about the host country.
d. They are politically less acceptable than wholly owned subsidiaries.
e. The goals of partners may diverge.

Accepted Answer

The answer of Which is not true of joint ventures?
a....

Question 20

Small firms in a large domestic market are referred to as:
a. Enthusiastic internationalizers.
b. Follower internationalizers.
c. Slow internationalizers.
d. Occasional internationalizers.
e. Domestic internationalizers.

Accepted Answer

The answer of Small firms in a large domestic market...

Quiz 5: Foreign Market Entries

The lower the value of firm-specific resources and capabilities such as________ the more likely firms will aggressively leverage them overseas. a. Tangible assets b. Know-how c. Software d. All of the above e. None of the above

Non-equity modes of entry typically involve: a. Exports and contractual agreements. b. Larger, harder-to-reverse commitments. c. Establishing independent organizations overseas. d. Joint ventures (JVs). e. Wholly owned subsidiaries.

The differences in formal and informal institutions that govern the rules of the game in different countries include _______ differences. a. Regulatory b. Language c. Cultural d. All of the above e. None of the above

Greenfield operations refers to: a. Licensing/franchising. b. Turnkey projects. c. R&D contracts. d. Co marketing. e. Wholly owned subsidiaries.

Organizing firm-specific resources and capabilities as a bundle: a. Favors firms with strong complementary assets. b. Prevents having assets integrated s a system. c. Discourages using them overseas. d. Is counterproductive. e. Occurs only in domestic markets.

Which of the following are not regulatory risks? a. An obsolescing bargain. b. Deals that have been struck by MNEs and host governments. c. Nationalization. d. Recent trends among host governments regarding their relationships with MNEs. e. B and C above.

Institutional Distance involves all of the following except that which is: a. Regulatory. b. Normative. c. Cognitive. d. Cultural. e. B and C above.

Small-scale entries normally benefit by their: a. Focus on accumulating experience. b. Emphasis on "learning by doing." c. Strong strategic commitment. d. First mover advantages. e. A and B above.

Selling the rights to intellectual property for a royalty fee is involved in: a. Licensing/franchising. b. Turnkey projects. c. R&D contracts. d. Comarketing. e. All of the above.

Large-scale entries do which of the following? a. Benefit from a strategic commitment. b. Assure local customers and suppliers. c. Deter potential entrants. d. A and B above. e. All of the above.

The strategic goal of __________ involves going after countries that offer the highest price. a. Natural resources-seeking b. Market-seeking c. Efficiency-seeking d. Innovation-seeking e. Profit-seeking

Firms may choose not to enter certain countries if: a. They possess rare firm-specific assets. b. The transaction costs are be too low. c. There are dissemination risks. d. There is an authorized diffusion of firm-specific assets. e. All of the above.

First mover advantages do not include: a. Developing proprietary, technological leadership. b. Preempting scarce assets. c. Establishing entry barriers. d. Successful clashes with dominant firms in domestic markets. e. Creating good relationships with key stakeholders.

Which of the following is not a location specific advantage? a. Agglomeration. b. Knowledge spillovers. c. A skilled labor force. d. A pool of specialized suppliers and buyers. e. All of the above are location advantages.

Which of the following exemplify trade barriers? a. Tariffs. b. Local content requirements. c. Restrictions on certain entry modes. d. A and C above. e. All of the above.

Small firms in a large domestic market are referred to as: a. Enthusiastic internationalizers. b. Follower internationalizers. c. Slow internationalizers. d. Occasional internationalizers. e. Domestic internationalizers.