Question: Which of the following factors contributes to a “flat” world? High import or export tariffs Government regulated industries Unique cultural differences in various countries Technology (e.g. email or smartphones) Answers: Unique cultural differences in various countries Conclusion of Which…
Question: Which of the following best describes the diagrams below? Industry B values Local Responsiveness over Global Integration. Some firms within Industry B are competing on different dimensions. Industry B values Local Responsiveness over Global Integration. All firms in Industry…
Question: Campbell’s Soup Company has decided to enter a new foreign market. They would like to avoid transportation costs for heavy canned goods, keep complete control over operations, and increase operations incrementally as the firm learns how to navigate the…
Question: Which of the following is an example of “Greenfield” foreign direct investment? Adidas acquires a third party distribution team in Argentina Adidas purchases a manufacturing center in Argentina Adidas builds a new manufacturing center in Argentina Adidas develops an…
Question: Coca-Cola would like to avoid the high import tariffs associated with selling products in Brazil. However, Coca-Cola is also concerned with protecting their secret recipe for Coke. Which internationalization strategy would best meet Coca-Cola’s needs? Alliance Exporting Foreign Direct…
Question: What advantage does licensing have over exporting? Increased profit potential Rapidly enter new markets Use excess capacity to help with economies of scale Gain local cost or production advantages Answers: Use excess capacity to help with economies of scale…
Question: Which of the following is NOT an advantage of exporting? Easier product customization Rapidly enter new markets Distribution can be handled through contracts Build economies of scale Answers: Distribution can be handled through contracts Conclusion of Which of the…
Question: Packaged goods often require high levels of national differentiation, and are therefore produced within a country rather than imported / exported. This industry would typically have _ levels of international trade and _ levels of foreign direct investment. high,…
Question: A multinational company is assessing its internationalization strategy. Which of the following is an example of local responsiveness? Developing best practices Exporting a uniform product to all regions Changing menu items to match regional tastes Standardizing a production process…
Question: Why is having dynamic capability critical to success in the pharmaceutical industry? It eliminates competition. It prevents other firms from joining the market. It allows firms to adjust to changing business conditions. It allows firms to charge more for…
