Question 1

What problems are common with the published data available about different countries?

Accepted Answer

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Question 2

Comparability of economic information among countries is hampered by countries' use of different definitions for similar terms.

Accepted Answer

Different countries use different accounting standards and terminology which leads to inconsistency and makes it difficult to compare economic information among them.

Question 3

Published government data is most often inaccurate because of translation errors from other countries' languages.

Accepted Answer

While translation errors from other languages can sometimes occur, published government data undergoes rigorous quality control and verification processes to ensure accuracy. Mistakes in data are more likely to be caused by human error, technical issues or changes in methodology.

Question 4

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, which involve selling off certain parts of the organization or discontinuing certain products or services, are more likely to come from higher up in the organization such as senior management or the board of directors, as they have a broader view of the organization's strategic goals and financial performance. In contrast, investment proposals may come from various levels within the organization such as staff personnel or line personnel who identify opportunities for growth or improvement.

Question 5

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

Accepted Answer

In a concentration strategy, a company focuses on one or a few foreign markets and builds a strong presence there before expanding to other countries. This allows them to develop a deep understanding of the market, tailor their product or service offering to meet local needs, and build strong relationships with local partners, suppliers, and customers. This approach can help companies avoid spreading their resources too thin and increase the chances of success in each market they enter.

Question 6

What are the major types of published data that managers can use to compare countries? Describe the tools available to managers for making country comparisons.

Accepted Answer

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Question 7

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

Accepted Answer

Diversification strategy involves spreading out investments to reduce risks, which in the context of international expansion, translates to entering many foreign countries and then gradually increasing presence, to spread out the risk and capitalize on a wider market.

Question 8

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 9

The more a company needs to alter its products and ways of doing business to be successful abroad, the more it should rely on a diversification strategy for entering foreign markets.

Accepted Answer

A diversification strategy involves entering entirely new lines of business, which is different from adapting products and ways of doing business to local markets. Adapting to local markets typically involves strategies like localization or internationalization, not diversification.

Question 10

Which of the following is generally the most costly information source for companies?

Accepted Answer

Marketing research and consulting companies are typically the most costly information source for companies as they provide customized research and analysis tailored to specific business needs, which can be expensive compared to other sources such as reports from government agencies or published reports by accounting firms. Reports from international agencies may also be costly but it depends on the specific agency and type of report.

Question 11

Companies have tended to wait too long to divest poorly performing foreign facilities, trying instead to improve performance through expensive means.

Accepted Answer

This statement is true. Companies often try to improve the performance of poorly performing foreign facilities through expensive means instead of divesting them in a timely manner.

Question 12

Top executives at Jordan, a U.S.consulting firm, are debating whether or not to expand into a country with a great deal of violence by staffing mostly with U.S.personnel.A vice president argues that Jordan should forgo sending its employees there because of the high risk for them of kidnappings in the region.Which of the following statements best supports the vice president's position?

Accepted Answer

The vice president's argument is focused on the risk of violence and how it could negatively impact their operations. Option B supports this argument by stating that violence is an indicator of additional risks. Options A, C, and D are not relevant to the argument about the risk of violence.

Question 13

In a concentration strategy for international expansion, a company goes first to one or a few countries and builds up fast there before going to other countries.

Accepted Answer

This statement correctly describes a concentration strategy for international expansion, where a company focuses on building a strong presence in one or a few countries before expanding further, rather than trying to enter multiple countries simultaneously. This approach allows the company to learn from the local market, adapt to local conditions, and optimize its operations before scaling up.

Question 14

In a short essay, discuss why simply examining a country's per capita GDP and its population doesn't necessarily lead to a good estimate for potential demand.

Accepted Answer

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Question 15

A manager has the task of collecting and analyzing data that will help the firm decide where to locate its international operations.Which of the following BEST describes how the manager should handle this task?

Accepted Answer

The manager should balance the cost of data collection with the expected benefit or payoff for the firm. Conducting extensive research regardless of the expense may not be financially feasible or necessary, and continuing data gathering indefinitely may delay decision-making without offering any significant advantage. Relying solely on governmental resources may not provide a comprehensive picture of all options available, as other sources of information should also be considered. Therefore, the best approach is to conduct cost-benefit analysis for data collection and prioritize sources of information based on their reliability and relevance to the decision at hand.

Question 16

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

Accepted Answer

A concentration strategy focuses on entering fewer markets deeply rather than spreading resources across many markets. High growth rate and long competitive lead times in a market make it an attractive target for concentration, as the company can invest in understanding and adapting to this market while facing less immediate competition.

Question 17

Which of the following is the LEAST likely reason for inaccuracies in published governmental data?

Accepted Answer

Translation errors are a possible source of inaccuracies in international data collection, but it is the least likely reason compared to other options. The other options, including resource limitations, purposeful publication of misleading information, and false information being provided to data collectors, are more plausible sources of inaccuracies in published governmental data.

Question 18

Top executives at Jordan, a U.S.consulting firm, are debating whether or not to expand operations into a country with a great deal of violence by staffing mostly with U.S.personnel.A vice president argues that Jordan should send its employees there.Which of the following statements LEAST supports the vice president's position?

Accepted Answer

The statement that operating costs are lower in violent areas does not support the vice president's position to send Jordan employees to the high-risk location. Lower operating costs may be a benefit, but it does not address the safety and security concerns of the employees.

Question 19

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

Subsidiary managers may hesitate to suggest divestments due to the personal risk of job loss, making them reluctant to propose actions that could eliminate their positions.

Question 20

Which of the following is the LEAST likely reason that inaccuracies appear in published information about countries?

Accepted Answer

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Quiz 13: Country Evaluation and Selection