Question 1

All of the follow are true of direct exports EXCEPT:

Accepted Answer

A)  Most basic mode of entry.
B)  Capitalizes on economies of scale in production concentrated in the home country.
C)   Affords better control over distribution.
D)   The agendas and objectives of the intermediaries and exporters are the same.

Question 2

Non-equity modes of entry include joint ventures and wholly owned subsidiaries.

Accepted Answer

A) True 
 B)False

Question 3

Acquisition adds no new capacity.

Accepted Answer

A) True 
 B)False

Question 4

Is "foreignness" a liability or an asset? What causes it to be one or the other?

Accepted Answer

In terms of the "liability of foreignnes...

Question 5

The market potential of substitute products may encourage firms to bring them abroad.

Accepted Answer

A) True 
 B)False

Question 6

Institutional distance involves all of the following EXCEPT that which is:

Accepted Answer

A)  Regulatory.
B)  Normative.
C)   Cognitive.
D)   Integrative.

Question 7

Which of the following would be considered an obstacle to internationalization for a small firm in a large domestic market?

Accepted Answer

A)  ​A plentiful resource base.
B)  ​The large size of their domestic market.
C)   ​A large margin for error.
D)   ​All of the above.

Question 8

Customer discrimination against foreign firms has been eliminated in recent years.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following mottos is applicable when considering the where-to-enter question of foreign market entry?

Accepted Answer

A)  ​Wait for the dust to settle.
B)  ​Money makes the world go round.
C)   ​Actions speak louder than words.
D)   ​Location, location, location.

Question 10

Emerging multinationals are finding ways to succeed that do not necessarily conform to the notion of OLI advantages. Describe how the LLL framework does a better job of capturing the basis of their success.

Accepted Answer

A new framework is the "linkage, lever...

Question 11

The ________ strategy treats foreign demand as an extension of domestic demand.

Accepted Answer

A)  ​Turnkey operations.
B)  ​Direct exporting.
C)   ​Greenfield operations.
D)   ​Joint venture.

Question 12

One of the best ways for a foreign market entrant to overcome the liability of foreignness is through its superb value of firm-specific assets.

Accepted Answer

A) True 
 B)False

Question 13

The small size of a firm is a main reason firms go abroad.

Accepted Answer

A) True 
 B)False

Question 14

One of the main first-mover advantages a firm tries to gain is the resolution of technological and market uncertainties.

Accepted Answer

A) True 
 B)False

Question 15

Small firms often go abroad to follow their large counterparts as suppliers.
​

Accepted Answer

A) True 
 B)False

Question 16

Among the resource-based consideration a firm faces when deciding whether to enter foreign markets is:

Accepted Answer

A)  ​High entry barriers.
B)  ​The bargaining power of suppliers.
C)   ​The level of dissemination risks.
D)   ​Currency risks.

Question 17

According to a report by Rugman and others, among the largest Fortune Global 500 MNEs, feware truly "global." What does this statement mean and what does it take to be global?
​

Accepted Answer

The implication is that many global corp...

Question 18

First-mover preemptive investments would include:

Accepted Answer

A)  ​Avoiding scarce resources.
B)  ​Finding free-ride opportunities.
C)   ​Waiting for market uncertainties to be resolved.
D)   ​Cherry picking leading local suppliers and distributors.

Question 19

An emerging MNE's ability to identify and bridge gaps is known as location advantage.

Accepted Answer

A) True 
 B)False

Question 20

Non-equity modes of entry include direct exports and licensing.

Accepted Answer

A) True 
 B)False

Exam 6: Entering Foreign Markets

An emerging MNE's ability to identify and bridge gaps is known as location advantage.

Correct AnswerverifiedShow Answer

One of the main first-mover advantages a firm tries to gain is the resolution of technological and market uncertainties.

Correct AnswerverifiedShow Answer

Among the resource-based consideration a firm faces when deciding whether to enter foreign markets is:

Correct AnswerverifiedShow Answer

Customer discrimination against foreign firms has been eliminated in recent years.

Correct AnswerverifiedShow Answer

Small firms often go abroad to follow their large counterparts as suppliers. ​

Correct AnswerverifiedShow Answer

The ________ strategy treats foreign demand as an extension of domestic demand.

Correct AnswerverifiedShow Answer

Non-equity modes of entry include joint ventures and wholly owned subsidiaries.

Correct AnswerverifiedShow Answer

One of the best ways for a foreign market entrant to overcome the liability of foreignness is through its superb value of firm-specific assets.

Correct AnswerverifiedShow Answer

Institutional distance involves all of the following EXCEPT that which is:

Correct AnswerverifiedShow Answer

Which of the following would be considered an obstacle to internationalization for a small firm in a large domestic market?

Correct AnswerverifiedShow Answer

Acquisition adds no new capacity.

Correct AnswerverifiedShow Answer

According to a report by Rugman and others, among the largest Fortune Global 500 MNEs, feware truly "global." What does this statement mean and what does it take to be global? ​

Correct AnswerverifiedThe implication is that many global corp...View AnswerShow Answer

Non-equity modes of entry include direct exports and licensing.

Correct AnswerverifiedShow Answer

The small size of a firm is a main reason firms go abroad.

Correct AnswerverifiedShow Answer

Emerging multinationals are finding ways to succeed that do not necessarily conform to the notion of OLI advantages. Describe how the LLL framework does a better job of capturing the basis of their success.

Correct Answerverified​A new framework is the "linkage, lever...View AnswerShow Answer

Which of the following mottos is applicable when considering the where-to-enter question of foreign market entry?

Correct AnswerverifiedShow Answer

The market potential of substitute products may encourage firms to bring them abroad.

Correct AnswerverifiedShow Answer

First-mover preemptive investments would include:

Correct AnswerverifiedShow Answer

All of the follow are true of direct exports EXCEPT:

Correct AnswerverifiedShow Answer

Is "foreignness" a liability or an asset? What causes it to be one or the other?

Correct AnswerverifiedIn terms of the "liability of foreignnes...View AnswerShow Answer

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Small firms often go abroad to follow their large counterparts as suppliers.

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

According to a report by Rugman and others, among the largest Fortune Global 500 MNEs, feware truly "global." What does this statement mean and what does it take to be global?

Correct Answer
verified
The implication is that many global corp...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A new framework is the "linkage, lever...
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
In terms of the "liability of foreignnes...
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