Question 1

When establishing overseas partnerships, small firms prefer to work with larger foreign firms to gain advantage of :

Accepted Answer

A)   Brand reputation
B)   Existing infrastructure
C)   Existing sales team and service personnel
D)   All of the above

Question 2

International franchising involves:

Accepted Answer

A)   A company offering a standard package of systems and services to a company, in a different country, that brings capital and operational management to the business
B)   A company in a technology sector that merges with another company from a different industry
C)   Partnerships that involve equity sharing
D)   A company taking over another company forcefully A

Question 3

Which of the following is an economic risk that a company may face internationally?

Accepted Answer

A)   A country's citizenry revolts against dictatorial leaders
B)   A war between two countries
C)   Elections resulted in the change of a political party
D)   Inflation rates skyrockets in an operating country

Question 4

Born-global firms are found only in the technology sector

Accepted Answer

A) True 
 B)False

Question 5

________refers to restrictions on export of U.S. products and technology for use in industries the government considers sensitive to military or national-security concerns

Accepted Answer

A)   Foreign direct product rule
B)   Foreign direct investment
C)   Foreign portfolio investment
D)   Foreign institutional rule

Question 6

Which of the following risk companies face in the international environment?

Accepted Answer

A)   Exchange rate fluctuations
B)   Political risk
C)   Lack of Cultural knowledge
D)   All of the above

Question 7

A transnational strategy seeks to strike a compromise between the extreme localization of multi-domestic strategy and global strategy

Accepted Answer

A) True 
 B)False

Question 8

__________involves overseas expansion of the downstream supply chain in search of new customers to buy the company's products

Accepted Answer

A)   Factor market internationalization (FMI) 
B)   Product market internationalization (PMI) 
C)   Capital market internationalization (CMI) 
D)   Natural market internationalization (NMI)  B

Question 9

_________and_______ are go-it alone approaches to expanding in foreign markets

Accepted Answer

A)   Joint venture, mergers
B)   Cross-border acquisition, joint venture
C)   Greenfield venturing, cross-border acquisition
D)   Cross-border acquisition, strategic alliance

Question 10

A Joint venture is a form of strategic alliance

Accepted Answer

A) True 
 B)False

Question 11

Cultural concerns center around the anxiety and worry that ideas and practices from other countries are diluting the culture of one's country

Accepted Answer

A) True 
 B)False  True

Question 12

When companies expand internationally, there are minimum political risks

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a drawback of exporting?

Accepted Answer

A)   Access to new customers
B)   High transportation risk
C)   Creates better jobs
D)   Assistance from Small Business Administration

Question 14

Exporting is reserved only for the manufactured goods

Accepted Answer

A) True 
 B)False

Question 15

Before starting to export, small businesses should do all of the following EXCEPT:

Accepted Answer

A)   Always rely on guesstimation
B)   Learn about the process of exporting
C)   Aware of laws and regulations surrounding exporting
D)   Aware of business conditions of the destination country

Question 16

When the economy is in a downturn and people see themselves struggling to make ends meet, the preference for nationalism _______and interest in globalization _______

Accepted Answer

A)   Decreases, becomes stronger
B)   Decreases, increases
C)   Becomes stronger, decreases
D)   Decreases, decreases

Question 17

Which of the following refers to governmental actions in an operating country that may adversely impact the long-term profit or value of a firm?

Accepted Answer

A)   Economic risks
B)   Political risks
C)   Uncertainty avoidance
D)   Adverse impact

Question 18

Firms in developed countries expand internationally because there are less political risks in under-developed countries

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is NOT a characteristic of a born-global firm?

Accepted Answer

A)   Operates across national boundaries from the very beginning
B)   Top management has an international mindset
C)   Expands internationally after five years of its inconception
D)   Limited tangible resources in the domestic market

Question 20

Why do firms in United States look for labor in foreign countries?

Accepted Answer

A)   Labor is cheaper in some foreign countries
B)   Domestic workers, sometimes, lack the right education and training needed to perform the job
C)   Domestic workers are not willing to work in some sectors
D)   All of the above

Exam 14: Global Opportunities for Small Firms

When establishing overseas partnerships, small firms prefer to work with larger foreign firms to gain advantage of :

Correct AnswerverifiedShow Answer

International franchising involves:

Correct AnswerverifiedA

Which of the following is an economic risk that a company may face internationally?

Correct AnswerverifiedShow Answer

Born-global firms are found only in the technology sector

Correct AnswerverifiedShow Answer

________refers to restrictions on export of U.S. products and technology for use in industries the government considers sensitive to military or national-security concerns

Correct AnswerverifiedShow Answer

Which of the following risk companies face in the international environment?

Correct AnswerverifiedShow Answer

A transnational strategy seeks to strike a compromise between the extreme localization of multi-domestic strategy and global strategy

Correct AnswerverifiedShow Answer

__________involves overseas expansion of the downstream supply chain in search of new customers to buy the company's products

Correct AnswerverifiedB

_________and_______ are go-it alone approaches to expanding in foreign markets

Correct AnswerverifiedShow Answer

A Joint venture is a form of strategic alliance

Correct AnswerverifiedShow Answer

Cultural concerns center around the anxiety and worry that ideas and practices from other countries are diluting the culture of one's country

Correct AnswerverifiedTrue

When companies expand internationally, there are minimum political risks

Correct AnswerverifiedShow Answer

Which of the following is a drawback of exporting?

Correct AnswerverifiedShow Answer

Exporting is reserved only for the manufactured goods

Correct AnswerverifiedShow Answer

Before starting to export, small businesses should do all of the following EXCEPT:

Correct AnswerverifiedShow Answer

When the economy is in a downturn and people see themselves struggling to make ends meet, the preference for nationalism _______and interest in globalization _______

Correct AnswerverifiedShow Answer

Which of the following refers to governmental actions in an operating country that may adversely impact the long-term profit or value of a firm?

Correct AnswerverifiedShow Answer

Firms in developed countries expand internationally because there are less political risks in under-developed countries

Correct AnswerverifiedShow Answer

Which of the following is NOT a characteristic of a born-global firm?

Correct AnswerverifiedShow Answer

Why do firms in United States look for labor in foreign countries?

Correct AnswerverifiedShow Answer

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A

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B

___and_ are go-it alone approaches to expanding in foreign markets

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True

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When the economy is in a downturn and people see themselves struggling to make ends meet, the preference for nationalism _and interest in globalization _

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