Management

Q: 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.

Q: Institutional distance involves all of the following EXCEPT that which is: a. Regulatory. b. Normative. c. Cognitive. d. Integrative.

Q: 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

Q: Which of the following is not a location-specific advantage? a. Agglomeration. b. Knowledge spillovers. c. An unskilled labor force. d. A pool of specialized suppliers and buyers.

Q: A location-specific advantage that a firm with efficiency-seeking strategy would be: a. A location-specific advantage that a firm with efficiency-seeking strategy would be: b. Strong market demand. c. Economies of scale. d. Innovative labor force.

Q: Which of the following mottos is applicable when considering the where-to-enter question of foreign market entry? a. Wait for the dust to settle. b. Money makes the world go round. c. Actions speak louder than words. d. Location, location, location.

Q: A firm that spreads out its activities in a number of countries in different currency zones in order to offset the currency losses in certain regions through gains in other regions is engaged in: a. Tariffs. b. Local content requirements. c. Strategic hedging. d. Sunk costs.

Q: Which of the following is NOT considered a trade barrier? a. Tariffs. b. Tariffs. c. Local content requirements. d. Entry mode restrictions.

Q: A global trend since the 1980s and 1990s has been toward: a. Nationalization of foreign MNE assets. b. Privatization of assets. c. Expropriation of assets. d. None of the above.

Q: Among the resource-based consideration a firm faces when deciding whether to enter foreign markets is: a. High entry barriers. b. The bargaining power of suppliers. c. The level of dissemination risks. d. Currency risks.

Q: In industries that face high barriers to entry, firms are more likely to: a. Be more intense in their attempts to compete abroad. b. Avoid competing in foreign markets. c. Ignore economies of scale. d. All of the above.

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

Q: Which of the following is not a regulatory risk? 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.

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

Q: 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.

Q: The superb value of firm-specific resources and capabilities results in foreign entrants being: a. Faced with serious dissemination risk. b. Less able to leverage such assets overseas. c. Better able to overcome the liability of foreignness. d. None of the above.

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

Q: Which of the following would be considered an obstacle to internationalization for a small firm in a large domestic market? a. A plentiful resource base. b. The large size of their domestic market. c. A large margin for error. d. All of the above.

Q: When it comes to the propensity to internationalize, an enthusiastic internationalizer will most likely be characterized by being a: a. Large firm in a large domestic market. b. Large firm in a small domestic market. c. Small firm in a large domestic market. d. Small firm in a small domestic market.

Q: The liability of foreignness is: a. The inherent disadvantage foreign firms experience in host countries. b. Related strictly to the formal institutions that govern the way business is done in a foreign country. c. A challenge when it comes to resource supply but not to competitive advantage. d. Irrelevant in the process of entering foreign markets.

Q: As firms expand into more countries, they should recognize that: a. Foreign firms are less likely to be discriminated against. b. Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness. c. Foreign firms seldom are able to offset the liability of foreignness and still have some competitive advantage. d. Discrimination against foreign firms happens in informal ways and rarely in formal ways.

Q: 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

Q: In order to be successful in foreign markets, it is necessary for a firm to match its efforts in market entry and geographic diversification with its strategic goals. a. True b. False

Q: Formal rather than informal rules of the game govern competition in foreign markets. a. True b. False

Q: MNEs are firms that are truly global. a. True b. False

Q: Some foreignness is never an asset. a. True b. False

Q: An emerging MNEs ability to identify and bridge gaps is known as location advantage. a. True b. False

Q: Country-of-origin affect consistently confers a positive perception of foreign firms and products. a. True b. False

Q: A firm that merely exports/imports with no FDI is usually not regarded as an MNE. a. True b. False

Q: Equity and non-equity modes of entry into foreign markets are essentially the same. a. True b. False

Q: One of the disadvantages of franchising is the risk of creating competitors. a. True b. False

Q: Non-equity modes of entry include direct exports and licensing. a. True b. False

Q: Non-equity modes of entry include joint ventures and wholly owned subsidiaries. a. True b. False

Q: Entry strategies may change over time. a. True b. False

Q: Acquisition adds no new capacity. a. True b. False

Q: Turnkey projects reduce the competitiveness of foreign clients and increase their dependence when selling state of the art technology. a. True b. False

Q: Indirect exporting firms avoid exporting through domestically based intermediaries. a. True b. False

Q: Direct exports may work best if the export volume is small. a. True b. False

Q: MNEs that enter foreign markets through foreign direct investment do not have OLI advantages. a. True b. False

Q: One of the drawbacks of large-scale entries is limited strategic flexibility. a. True b. False

Q: First-mover advantages always outweigh late-mover advantages. a. True b. False

Q: One of the main first-mover advantages a firm tries to gain is the resolution of technological and market uncertainties. a. True b. False

Q: Firms with a market-seeking strategy will locate primarily where the advantages include an abundance of innovative individuals, firms, and universities. a. True b. False

Q: Industries in which suppliers and buyers locate in a specific region are more likely to benefit from location-specific advantages. a. True b. False

Q: Under the Stage Model school of thought firms will enter culturally similar countries during their first stage of internationalization. a. True b. False

Q: A host countrys local content requirements are primarily an attempt to avoid the presence of screwdriver plants. a. True b. False

Q: In an obsolescing bargain, an MNE receives greater incentives from a foreign government after entering that market. a. True b. False

Q: Firms that face high dissemination risks are more likely to choose against entering a foreign market. a. True b. False

Q: The more a company leverages its patented, branded, and trademarked products abroad, the less likely it is that counterfeits of these products will pop up. a. True b. False

Q: One of the best ways for a foreign market entrant to overcome the liability of foreignness is through its superb value of firm-specific assets. a. True b. False

Q: Currency risks can be reduced by currency hedging or strategic and hedging. a. True b. False

Q: The market potential of substitute products may encourage firms to bring them abroad. a. True b. False

Q: The bargaining power of buyers may lead to forward vertical integration. a. True b. False

Q: The bargaining power of suppliers may prompt backward vertical integration. a. True b. False

Q: Backward vertical integration refers to vertical integration that has not been updated. a. True b. False

Q: In regards to industry-based considerations, the higher the entry barriers, the more intensely firms will attempt to compete abroad. a. True b. False

Q: Small firms in a large domestic market are less likely to internationalize because of their relatively poor resource base and large size of their domestic market. a. True b. False

Q: Small firms often go abroad to follow their large counterparts as suppliers. a. True b. False

Q: The large size of the domestic market is the main reason firms go abroad. a. True b. False

Q: The small size of a firm is a main reason firms go abroad. a. True b. False

Q: Customer discrimination against foreign firms has been eliminated in recent years. a. True b. False

Q: The liability of foreignness is the inherent disadvantage foreign firms experience in host countries because of their nonnative status. a. True b. False

Q: Discussion of strategies for MNEs focuses on growth and global expansion. Under what circumstances can downsizing and withdrawing from countries make sense? Why might some firms fail to withdraw or downsize?

Q: The text points out that from a resource-based view, you and your firm need to develop overwhelming capabilities to offset the liability of foreignness. However, how does a small firm do that?

Q: Emerging multinationals are finding ways to succeed that do not necessarily conform to the notion of OLI advantages. Describe how the LLL framework does a better job of capturing the basis of their success.

Q: According to a report by Rugman and others, among the largest Fortune Global 500 MNEs, feware truly global. What does this statement mean and what does it take to be global?

Q: What are the OLI advantages and how do they relate to MNEs?

Q: Is it better to be a first mover or a late mover when entering foreign markets? Describe the advantages of either a first mover or late mover based on the example of an actual company.

Q: Location, location, location is an important factor in many strategic decisions. What considerations are essential in assessing location of potential foreign market entry?

Q: A firm faces resources-based, industry-based, and institution-based considerations when entering foreign markets. Describe the formal institution-based constraints of such a firm.

Q: Describe how the size of a firm and the size of the domestic market interact in influencing whether a firm seeks markets abroad.

1 2 3 … 1,015 Next »

Subjects