Question 1

Instead of comparing different proposals involving foreign operations,companies often make decisions by looking at proposals one at a time. All of the following are reasons for this behavior EXCEPT which one?

Accepted Answer

A lack of comparable data on different countries does not necessarily render comparison impossible as companies can seek out and obtain relevant data to make informed decisions. The other options suggest the need for quick decision-making or practical limitations in information gathering and analysis, which can be valid reasons for considering proposals one at a time.

Question 2

Because many regional trading groups prohibit companies from producing in more than one member country,companies need to understand how to evaluate international geographic alternatives.

Accepted Answer

Many regional trading groups actually encourage production in multiple member countries to foster economic integration, trade, and investment within the region.

Question 3

Carrefour has been more successful in Europe than Walmart,whereas Walmart has been more successful in the United States than Carrefour. What is the most likely reason for these results?

Accepted Answer

The answer of Carrefour has been more successful in Europe...

Question 4

A go-no-go decision means ________.

Accepted Answer

A go-no-go decision is a project management term that refers to the decision-making process used to determine whether a project meets certain threshold criteria before it can be approved to move forward. This decision is made based on the evaluation of the project's feasibility, risks, benefits, and costs. If the project meets these criteria, it is given the go-ahead, while if it falls short, the project may be cancelled or postponed until it can be improved.

Question 5

Carrefour expanded internationally by first ________.

Accepted Answer

The answer of Carrefour expanded internationally by first ________.
...

Question 6

Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?

Accepted Answer

The answer of Which of the following best explains why...

Question 7

We now have technology to allow people to communicate globally without traveling as much. Leading researchers on urbanization and planning suggest that the most likely consequence of this is ________.

Accepted Answer

The ability to communicate globally without traveling reduces the need for physical presence, leading to an increase in remote work practices such as e-mailing and teleconferencing with colleagues. This does not directly imply a decrease in international travel, changes in immigration restrictions, or the living preferences of retirees.

Question 8

Which of the following best explains why foreign subsidiary managers are often reluctant to propose divestments in the countries where they are working?

Accepted Answer

The answer of Which of the following best explains why...

Question 9

In a diversification strategy for international expansion,a company would move ________.

Accepted Answer

The answer of In a diversification strategy for international expansion,a...

Question 10

In a concentration strategy of foreign expansion,a company would go to ________.

Accepted Answer

In a concentration strategy of foreign expansion, a company would focus on one or a few foreign countries and build a strong involvement there before going to other countries. This allows the company to establish a foothold in a foreign market before moving on to others, which can help reduce risks and increase efficiency. By concentrating resources and efforts on a few key markets, the company can better understand and meet the needs of customers in those markets.

Question 11

A company should probably use a concentration strategy for international expansion when there are ________.

Accepted Answer

A concentration strategy is suitable when there is a high growth rate and long competitive lead time, allowing the company to focus resources on a few markets to maximize growth and establish a strong market position before competitors enter.

Question 12

The decision-making process for a company's reinvestment choices is often different from those for new investment choices because ________.

Accepted Answer

Reinvestment choices involve decisions about whether to continue investing in existing operations, which may have already been established and have ongoing operations, or to allocate resources to new investment opportunities. This can be a more complex decision-making process compared to new investments as failure to support an existing investment may jeopardize the firm's operations and competitiveness in that country. In contrast, new investment choices are often evaluated based on financial measurement criteria such as internal rate of return and other metrics to assess the potential for profitability and growth.

Question 13

Which of the following is true about projected demographic changes up to the year 2050 that could affect future production and sales locations?

Accepted Answer

According to demographic projections, per capita GDP growth is expected to be higher in today's developing economies than in today's developed economies. This could result in changes in production and sales locations as companies may shift their focus to these growing markets. However, the other choices are incorrect; the share of the working population is expected to fall in developed countries and rise in developing countries, the percentage of the world's population living in developed countries is expected to decrease, and the population in sub-Saharan Africa is projected to continue to grow.

Question 14

Committing resources to one country usually means forgoing or delaying projects in others.

Accepted Answer

Committing resources to one country means that resources are not available for other countries, and thus other projects may be delayed or foregone.

Question 15

Which of the following is NOT true about the harvesting or divestment of foreign operations?

Accepted Answer

The statement that companies have tended to divest too soon, rather than working to improve performance, is not necessarily true as a general statement about the motives or outcomes of divesting foreign operations. Decisions to divest or harvest operations are complex and can be driven by a variety of strategic considerations, including but not limited to performance issues. There is no overarching trend that companies divest too soon; rather, such decisions are specific to each company's situation and strategic goals.

Question 16

All of the following have been predicted to occur in the future as the result of advances in global communications EXCEPT which one?

Accepted Answer

The other options (B, C, and D) are all predicted to occur as a result of advances in global communications, while option A suggests that people will still primarily choose to live where their employers are headquartered despite the increase in remote working opportunities.

Question 17

Assume Company A receives a proposal from Company B to be a joint venture partner abroad. Company A is most likely to make its decision based on ________.

Accepted Answer

A go-no-go basis is a common method for making a decision on whether to move forward with a joint venture proposal. This involves evaluating the potential risks and rewards of the proposal and then deciding whether to proceed or not. An opportunity-risk matrix and a global matrix comparison are other tools that could potentially be used, but they are not as common as a go-no-go basis. Oligopolistic reaction is not relevant to the decision-making process for a joint venture.

Question 18

Which of the following reasons most compels companies to make location decisions on one international opportunity at a time rather than comparing among two or more?

Accepted Answer

If an important customer develops opportunities in a foreign country, a company may have little alternative except to follow that customer's lead. This factor can compel companies to focus on one international opportunity at a time rather than comparing among multiple opportunities.

Question 19

The origin of investment proposals differs from the origin of divestment proposals in that the divestment proposals are more likely to come from ________.

Accepted Answer

Divestment proposals are more likely to come from higher up in the organization because they involve larger strategic decisions and the potential sale or spin-off of entire business units. In contrast, investment proposals may come from a variety of sources including subsidiary management, outside parties, and staff or line personnel.

Question 20

Demographers project that the share (percentage of population)of what we now consider the working-age population in developed countries will decrease up to the year 2050. Which of the following is the most likely result of this trend?

Accepted Answer

The answer of Demographers project that the share (percentage of...

Quiz 12: Country Evaluation and Selection