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Exam 8: International Expansion and Global Market Opportunity Assessment

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Question 31

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When transportation costs and automation are both high, then the knowledge worker component of the location calculation becomes more important.

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Question 32

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Management institutes, certification agencies, and headhunting firms are examples of specialized intermediaries for:

A) financial markets.
B) markets for managerial talent.
C) markets for products.
D) auction markets.
E) labor market.

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Question 33

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What are the factors that decide an organization's choice of the mode of entry in the international market?

An organization, when it is planning to expand in a foreign country, needs to view the country as a monolith.

Acquisition is a bad strategy when an industry is consolidating.

_____ are straight-line, one-factor projections from present to future.

_____ is the degree to which the company's existing practices, resources and capabilities fit the new market.

Government policies on foreign-trade regulation and taxation constitute the _____ factors that have a significant influence on business.

Entrepreneurs and small businesses are most likely to avoid the use of exporting as a way to get their products into markets around the globe because the cost of exporting is higher than that of the other entry modes.

Venture-capital firms, private equity providers, and mutual funds are examples of specialized intermediaries for:

Which of the following is an advantage of licensing and franchising?

A _____ assessment works best with one situation or scenario but provides little direction when there is uncertainty about potential changes to critical features of the scenario.

Which of the following is an advantage of exporting?

What could be the disadvantages of exporting of goods?

_____ refers to an international entry mode involving the granting of permission by one party to another party to use intellectual property rights, such as trademarks, patents, or technology, under defined conditions.

Market due diligence relies on published research on the markets rather than interviews with potential customers and industry experts.

_____ is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers, and manages the selected process based on defined and measurable performance criteria.

What are the reasons for companies wishing to embark on an expansion strategy?

A greenfield venture has the most potential to provide above-average returns.

The United States is separated from Nigeria by 5,840 miles and the Atlantic Ocean. According to the CAGE framework this is a case of: