Question 1

In today's increasingly integrated global marketplace, where demand level, consumption sophistication, and rivalry intensity are all changing drastically, the decision on when to embark on international expansion is critical for transnational operations.

Accepted Answer

A) True 
 B)False

Question 2

_____________ are third parties that specialize in facilitating imports and exports.

Accepted Answer

A)   WTO
B)   Export intermediaries
C)   NAFTA
D)   None of the aboveE) B) and C)
F) A) and D)

Question 3

Early movers also often pay __________________ costs in learning and adapting to local environments and in countervailing imitation.

Accepted Answer

A)   lower
B)   same
C)   equal
D)   higherE) B) and C)
F) C) and D)

Question 4

Later movers who use a________________strategy gain from lessons from early movers.

Accepted Answer

A)   walk-and-see
B)   wait-and-see
C)   come-and-see
D)   none of the aboveE) None of the above
F) B) and C)

Question 5

Barter trade occurs either between individuals, between governments, between firms, or between government and firm, all from one different country.

Accepted Answer

A) True 
 B)False

Question 6

International acquisition is an across border transaction in which a foreign investor acquires an established local firm and makes the acquired local firm a subsidiary business within its global portfolio.

Accepted Answer

A) True 
 B)False  False

Question 7

Which of the following is NOT a component of FDI policy?

Accepted Answer

A)   Know what entry mode(s)  are allowed.
B)   A host government may require MNEs to locate projects in certain geographical regions to help boost regional economies.
C)   Check content localization requirements.
D)   Appraise foreign exchange control measures in the home country.E) B) and C)
F) None of the above

Question 8

Build-operate-transfer is a "turn key" investment.

Accepted Answer

A) True 
 B)False

Question 9

The ____________ rate determines the general level of the tax burden shouldered by firms.

Accepted Answer

A)   Statutory rate
B)   Effective tax rate
C)   Sales tax rate
D)   Corporate tax rateE) A) and C)
F) A) and B)

Question 10

In today's increasingly integrated marketplace, where demand level, consumption sophistication, and rivalry intensity are all changing drastically, the decision of when to embark on international expansion is critical for transactional operations.

Accepted Answer

A) True 
 B)False

Question 11

Market pioneers may benefit from the advantages of holding technical leadership, seizing scarce resources, and creating buyer switching costs.

Accepted Answer

A) True 
 B)False

Question 12

Outbound (market) logistics are based largely on proximity to major buyers and end consumers.

Accepted Answer

A) True 
 B)False  True

Question 13

Late investors do suffer from the preceding uncertainties and risks.

Accepted Answer

A) True 
 B)False

Question 14

Timing of entry is not as important once the company identifies its environments and opportunities.

Accepted Answer

A) True 
 B)False

Question 15

A foreign investor may consider establishing an______________ enterprise to achieve investment in subsidiary projects.

Accepted Answer

A)   umbrella
B)   wholly owned subsidiary
C)   joint-venture
D)   none of the aboveE) A) and B)
F) None of the above

Question 16

The statutory tax rate determines the general level of the tax burden shouldered by firms.

Accepted Answer

A) True 
 B)False

Question 17

Early movers gain from____________________________.

Accepted Answer

A)   preemptive opportunities
B)   economic reform
C)   preemptive promotion
D)   market power.E) None of the above
F) A) and C)

Question 18

_____________________movers can "piggy back" on early investment if imitation is easy, thereby gaining profit without having to pay as many innovators.

Accepted Answer

A)   Later
B)   Earlier
C)   Foreign
D)   LocalE) All of the above
F) A) and C)

Question 19

Contrarily, later movers who use a wait-and-see strategy usually do not gain from lessons from the earlier movers.

Accepted Answer

A) True 
 B)False  False

Question 20

International entry strategies concern where (location selection), when (timing of entry), and how (entry-mode selection) international companies should enter and invest in a foreign territory during international expansion.

Accepted Answer

A) True 
 B)False

Exam 10: International Entry Strategies

In today's increasingly integrated global marketplace, where demand level, consumption sophistication, and rivalry intensity are all changing drastically, the decision on when to embark on international expansion is critical for transnational operations.

Correct AnswerverifiedShow Answer

_____________ are third parties that specialize in facilitating imports and exports.

Correct AnswerverifiedShow Answer

Early movers also often pay __________________ costs in learning and adapting to local environments and in countervailing imitation.

Correct AnswerverifiedShow Answer

Later movers who use a________________strategy gain from lessons from early movers.

Correct AnswerverifiedShow Answer

Barter trade occurs either between individuals, between governments, between firms, or between government and firm, all from one different country.

Correct AnswerverifiedShow Answer

International acquisition is an across border transaction in which a foreign investor acquires an established local firm and makes the acquired local firm a subsidiary business within its global portfolio.

Correct AnswerverifiedFalse

Which of the following is NOT a component of FDI policy?

Correct AnswerverifiedShow Answer

Build-operate-transfer is a "turn key" investment.

Correct AnswerverifiedShow Answer

The ____________ rate determines the general level of the tax burden shouldered by firms.

Correct AnswerverifiedShow Answer

In today's increasingly integrated marketplace, where demand level, consumption sophistication, and rivalry intensity are all changing drastically, the decision of when to embark on international expansion is critical for transactional operations.

Correct AnswerverifiedShow Answer

Market pioneers may benefit from the advantages of holding technical leadership, seizing scarce resources, and creating buyer switching costs.

Correct AnswerverifiedShow Answer

Outbound (market) logistics are based largely on proximity to major buyers and end consumers.

Correct AnswerverifiedTrue

Late investors do suffer from the preceding uncertainties and risks.

Correct AnswerverifiedShow Answer

Timing of entry is not as important once the company identifies its environments and opportunities.

Correct AnswerverifiedShow Answer

A foreign investor may consider establishing an______________ enterprise to achieve investment in subsidiary projects.

Correct AnswerverifiedShow Answer

The statutory tax rate determines the general level of the tax burden shouldered by firms.

Correct AnswerverifiedShow Answer

Early movers gain from____________________________.

Correct AnswerverifiedShow Answer

_____________________movers can "piggy back" on early investment if imitation is easy, thereby gaining profit without having to pay as many innovators.

Correct AnswerverifiedShow Answer

Contrarily, later movers who use a wait-and-see strategy usually do not gain from lessons from the earlier movers.

Correct AnswerverifiedFalse

International entry strategies concern where (location selection), when (timing of entry), and how (entry-mode selection) international companies should enter and invest in a foreign territory during international expansion.

Correct AnswerverifiedShow Answer

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False

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True

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