QUESTION Which of the following countries presents a favorable benefit-cost-risk trade-off scenario for foreign expansion? A. A country ridden by private-sector debt B. A country with a free market system C. A country experiencing a dramatic upsurge in inflation rates D. A country that is heavily populated E. A country that is less developed and […]
QUESTION Which of the following factors determines the value that an international business can create in a foreign market? A. Population density in the foreign market B. Political stability of the foreign market C. Nature of indigenous competition D. Per capita income in the foreign market E. Type of political system in the foreign market […]
QUESTION In international business, a product that is not widely available in a foreign market and satisfies an unmet need: A. is likely to have greater value. B. will have to be priced relatively low. C. will see a decrease in sales volume. D. is not suited to that particular market. E. will fail to […]
QUESTION In which of the following situations can an international business command higher prices for a particular product in a foreign market? A. When the product is widely available in the foreign market B. When sales volumes is relatively low in the foreign market C. When the product offers greater value to customers in the […]
QUESTION Which of the following is an example of a first-mover advantage? A. The ability to create switching costs that tie customers into one’s products or services B. The avoidance of pioneering costs that a later entrant into the foreign market has to bear C. The increased probability of surviving in a foreign market D. […]
QUESTION First-mover disadvantages refer to: A. disadvantages associated with entering a foreign market before other international businesses. B. costs that a late entrant to a foreign market has to bear. C. a direct restriction on the quantity of a good that can be imported into a country. D. imperfections in the operation of the market […]
QUESTION Which of the following is true of the costs and risks associated with doing business in a foreign country? A. They are greater for late entrants. B. They are higher in politically democratic nations. C. They are less pronounced in the case of licensing. D. They are lower in economically advanced nations. E. They […]
QUESTION An early entrant find may find itself at a disadvantage if it: A. is trying to realize location and experience curve economies. B. incurs low development costs. C. faces a subsequent change in business regulations in the host-country. D. has a core competence based on control over technological know-how. E. considers a greenfield strategy. […]
QUESTION The liability associated with foreign expansion is greater for foreign firms that: A. choose to ride on an early entrant’s investments. B. use countertrade agreements. C. enter a national market early. D. ride down the experience curve behind their rivals. E. avoid pioneering costs. ANSWER C
QUESTION The probability of survival for an international business increases if it: A. enters a national market after several other foreign firms have already done so. B. avoids the use of countertrade agreements. C. enters a national market early. D. enters a foreign market via turnkey projects. E. avoids engaging in joint ventures. ANSWER […]
