Reference no: EM133299914

QUESTION 1

An international firm considering foreign expansion should take into account that

A) the timing and scale of entry of foreign expansion are minor details in comparison with the choice of foreign market.

B) the costs and risks associated with foreign expansion are higher in economically advanced nations.

C) if the firm's core competence is based on proprietary technology, entering a joint venture might risk losing control of that technology.

D) the long-run economic benefits of doing business in a country are solely a function of the country's population size.

E) politically unstable and less developed nations offer favorable benefit-cost-risk trade-off conditions.

QUESTION 2

Breezy Days Inc. is the first wind-based energy plant in Mexico, and it has captured a large portion of the market. It has created a strong brand name that everyone associates with energy efficiency and cost savings. In this market, Breezy Days Inc. is demonstrating

A) a greenfield venture.

B) pioneering costs.

C) purchasing power parity.

D) the small-scale entry.

E) first-mover advantages.

QUESTION 3

Chevon's Champagne is considering small-scale entry into the European market. What would be a disadvantage of small-scale entry for this firm?

A) possibility of escalating commitment leading to major financial losses

B) limited availability of resources for use in other markets

C) increase in economic exposure due to minimal time spent in evaluating a foreign market

D) lack of flexibility associated with strategic commitments

E) difficulty of building market share and capturing first-mover advantages

QUESTION 4

Heat Tough Inc. makes heat-proof copper cookware in the United States, and it is looking to distribute its products in Europe. Rather than build and maintain a manufacturing facility in the United Kingdom, the company decides to ship its products directly from its plant in Illinois. What type of entry mode is the company using?

A) exporting

B) licensing

C) turnkey project

D) acquisition

E) greenfield venture

QUESTION 5

In international business, an advantage of being a late entrant in a foreign market is the ability to

A) ride on an early entrant's investments in learning and customer education.

B) make a cost advantage over first movers.

C) make a switching costs that tie customers into products or services.

D) build sales volume and ride down the experience curve before early entrants.

E) capture demand by establishing a strong brand name.