Reference no: EM132838686
Q1. Which of the following is NOT a way in which a company may internationalise its business activity?
Select one:
a. Establishing a subsidiary in a different geographical region of the home country.
b. Indirect exporting
c. Direct exporting.
d. Franchising operations in overseas countries.
e. Using joint ventures with overseas firms.
Q2. Which two of the following might be regarded as ownership-specific advantages for multinational involvement?
Select one or more:
a. Seeking to extend the product life-cycle by moving into overseas markets which are still in the 'growth' phase for that product.
b. Setting up an overseas production operation because of the uncertainty of franchising operations to 'local' firms already in the market.
c. Undercutting the prices of 'local' producers in overseas markets by exploiting the global economies of scale available to the multinational.
d. Exploiting a well-established global brand image to dominate overseas markets
e. A high-tech electronics company moving into university science parks overseas.
Q3. Which one of the following provides an example of 'internalisation' as a reason for multinational activity?
Select one:
a. Seeking to extend the product life-cycle by moving into overseas markets which are still in the 'growth' phase for that product.
b. Exploiting a well-established global brand image to dominate overseas markets.
c. Setting up an overseas production operation because of the uncertainty of franchising operations to 'local' firms already in the market.
d. A high-tech electronics company moving into university science parks overseas.
e. Undercutting the prices of 'local' producers in overseas markets by exploiting the global economies of scale available to the multinational.
Q4. Which three of the following elements are part of the 'Eclectic' theory of internationalisation proposed by Dunning?
Select one or more:
a. Ownership specific and other advantages are best exploited by the company selling them to overseas firms.
b. Companies find it less profitable to exploit ownership specific advantages in an overseas market than in the domestic market.
c. Ownership specific and other advantages are best exploited by the company itself rather than by selling them to overseas firms.
d. Companies find it more profitable to exploit ownership specific advantages in an overseas market than in the domestic market.
e. Companies posses 'ownership specific' advantages over firms in the host country.
Q5. Which of the following theories of the internationalisation process pays particular attention to the social relationships involved?
Select one:
a. International Product Life Cycle.
b. Simultaneous theory.
c. Network theory.
d. Eclectic theory
e. Sequential theory.
Q6. Answer true or false to the following statement.
'First generation franchising' refers to situations where the franchisee receives extensive guidance and instructions from the franchisor.
Select one:
True
False
Q7. Answer true or false to the following statement.
Patents, trademarks and copyrights are often referred to as 'intellectual property rights'.
Select one:
True
False
Q8. Answer true or false to the following statement.
In a 'shared value-added' joint venture, each partner brings a specific competency; e.g. one might research, the other might manufacture.
Select one:
True
False
Q9. Answer true or false to the following statement.
When a firm sells overseas by using intermediaries such as an export house, we refer to this as direct exporting.
Select one:
True
False
Q10. Answer true or false to the following statement.
A confirming house buys products from a domestic firm and sells them abroad on its own account.
Select one:
True
False