Question 1

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

Accepted Answer

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

Question 2

Which of the following question 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 refer to the social and cultural aspects that can affect a business, including attitudes, beliefs, trends, and lifestyles. The dominant local religions and their influence on consumer attitudes and opinions directly relate to these sociocultural aspects, impacting consumer behavior and preferences.

Question 3

_____ is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers, and manages the selected process based on defined and measurable performance criteria.

Accepted Answer

Business-process outsourcing (BPO) refers to the practice of contracting a specific work process or processes to an external service provider. The services can include payroll, accounting, telemarketing, data recording, social media marketing, customer support, and more. The external provider then takes charge of managing and executing these tasks based on predetermined performance metrics.

Question 4

Which of the following is an advantage of exporting?

Accepted Answer

Exporting allows companies to quickly enter foreign markets with relatively low risk compared to establishing local manufacturing or a physical presence.

Question 5

Which of the following is true of acquisitions?

Accepted Answer

The acquiring company gains control of another firm by purchasing its stock.

Question 6

The United States is separated from Nigeria by 5,840 miles and the Atlantic Ocean.According to the CAGE framework this is a case of:

Accepted Answer

The CAGE framework identifies different types of distance between countries that can affect international business: Cultural, Administrative, Geographic, and Economic. The statement specifically mentions the physical separation (miles) and a natural barrier (Atlantic Ocean), which directly relate to geographic distance.

Question 7

The GDP of France is 2.113 trillion USD whereas Sierra Leone's GDP is approximately 4.812 billion USD.According to the CAGE framework, this is a case of:

Accepted Answer

Economic distance is highlighted by the significant difference in GDP between France and Sierra Leone, indicating disparities in the size of their economies.

Question 8

A(n)_____ involves a contractual agreement between two or more enterprises stipulating that the involved parties will cooperate in a certain way for a certain time to achieve a common purpose.

Accepted Answer

A strategic alliance is a formal agreement between two or more parties to pursue a set of agreed upon objectives while remaining independent organizations. This type of partnership allows companies to pursue common goals or to meet critical business needs while maintaining their separate identities and not merging their assets or operations as in mergers or acquisitions.

Question 9

Institutional differences refer to differences in the:

Accepted Answer

E  Institutional differences primarily refer to variations in the political systems and social norms between countries, as these are key components of a country's institutional framework.

Question 10

Firms export mostly to countries that are close to their facilities because:

Accepted Answer

Lower transportation costs are a significant factor for firms when deciding to export to nearby countries. This reduces overall expenses and can make the logistics of exporting more manageable and efficient.

Question 11

Which of the following is affected by the absence of colonial ties in the CAGE framework?

Accepted Answer

The CAGE framework, which stands for Cultural, Administrative, Geographic, and Economic distances, uses Administrative distance to account for historical and political associations between countries, including colonial ties. The absence of colonial ties would primarily affect Administrative distance, as it encompasses aspects like shared political affiliations, legal systems, and government policies.

Question 12

Which of the following is an advantage of an acquisition?

Accepted Answer

Acquisitions allow the acquiring company to benefit from established manufacturing operations in the foreign country, providing immediate access to production capabilities, local market knowledge, and potentially reducing the time and cost associated with building new facilities from scratch.

Question 13

Which of the following is an advantage of licensing and franchising?

Accepted Answer

Licensing and franchising allow for fast market entry with relatively low risk and cost compared to establishing new operations from scratch.

Question 14

Emerging markets lack many of the specialized intermediaries that make financial markets work.The lack of such intermediaries is referred to as:

Accepted Answer

The lack of specialized intermediaries in emerging markets is referred to as "institutional void." This term describes the absence of institutions that facilitate the efficient operation of markets, such as those involved in the intermediation process between buyers and sellers, or between savers and borrowers.

Question 15

Americans use the English language as the primary means of communication whereas Asian Indians have a host of local languages that serve as the means of communication.This difference between the two countries would be categorized as:

Accepted Answer

The difference in primary languages used for communication between Americans and Asian Indians is an example of cultural distance, as it reflects variations in language, beliefs, norms, and values between the two groups.

Question 16

A(n)_____ is a transaction in which a firm gains control of another firm by purchasing its stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a purchase price.

Accepted Answer

An acquisition is when one firm gains control of another by purchasing its stock or paying the owners a purchase price.

Question 17

_____ refers to outsourcing work to a nondomestic third party.

Accepted Answer

International outsourcing refers to the practice of hiring a third party from another country to perform services or create goods that were previously done in-house or within the domestic economy. This is distinct from exporting, importing, insourcing, or forming nonentity joint ventures, which involve different aspects of international business and operations.

Question 18

Which of the following is affected by institutional weakness in the CAGE framework?

Accepted Answer

Institutional weakness is primarily related to administrative distance, which involves differences in laws, regulations, and institutions between countries.

Question 19

_____ refers to the sale of products and services in foreign countries that are sourced from the home country.

Accepted Answer

Exporting is the process of selling goods and services produced in one's home country to buyers in other countries.

Question 20

Which of the following is an advantage of partnering and strategic alliance?

Accepted Answer

Shared costs in a partnership or strategic alliance can reduce the investment needed from each partner, making it an advantage.

Quiz 8: International Expansion and Global Market Opportunity Assessment