Reference no: EM133254331

1. In global businesses, arbitrage is

Creating sustainable global competitive advantages

Exploitation of differences between national or regional markets

Having good understandings of foreign markets

Creating economy of scale

2. Which of the following statements is NOT true when describing emerging markets?

Emerging markets have institutional voids.

Corporate governance is notoriously poor in emerging markets.

Composite indices such as country rankings can differentiate among emerging markets.

Emerging markets offer great growth opportunities

3. In analyzing political risk in global businesses, what are NOT major sources of political risk?

Obsolescing bargain mechanism

Technological changes

Sociopolitical instability and grievances

Preferences and attitudes

4. State capitalism has become popular in emerging markets other than China, such as Russia, India, and Brazil. What is the primary objective of state capitalism?

To stimulate economic development by investing government-controlled resources

To allow the government to play a dominant role in controlling the wealth that markets generate

To improve institutional frameworks and reduce institutional voids

To help domestic firms compete with foreign entrants

5. The types of network effects present in a business model impact the nature of the competition a company will face and the optional business strategies. Which of the following statements about strategy is NOT true if network effects are primarily global?

The venture must begin with a substantial global presence.

The venture needs to acquire customers in many markets.

Acquisitions may be the easiest way to enter new countries.

The markets tend to be winner take all.