GMS 522 midterm Test with Questions and 100%
Correct Answers
Which is not a form of government export promotion? - ✔✔Establishing voluntary
export restrictions on local firms
Raymond and William had completed their foreign market entry analysis. They were just
about ready to make a recommendation to the Board on which country the company
should enter next. William recalled, however, that the last time they had conducted
such an analysis they did not factor in corruption levels. This omission created serious
problems for the company as the constant requests for bribes made day to day
operations in the country difficult. Below is a shortlist of countries Raymond and William
are considering entering with their TI corruption scores. Ignoring possible
methodological problems if perceived corruption level is the only deciding factor, which
country should be entered? Transparency International (TI) Corruption Perception Index
(2011) Denmark - 9.4 New Zealand - 9.5 Trinidad - 3.2 Iraq - 1.8 Somalia - 1.0 - ✔✔3)
New Zealand
LCD Inc., a privately owned Asian company, had developed a revolutionary technology
which significantly improved the screen resolution of the video iPod and PDAs. The firm
was interested in penetrating the North American market but did not have the capital to
set up manufacturing facilities to produce its own line of these hand held devices. LCD
knew that other firms were doing research in this area and may soon have a competing
technology. As a consultant to LCD you would recommend: - ✔✔2) Licensing the
technology to a manufacturer of hand held devices
The CEO of Ainsworth Inc. was committed to global expansion. Ainsworth was, however,
a new firm and had no track record operating outside of Canada. The CEO was
particularly concerned about political risk and the impact it could have on the firm's
expansion plans. Based only on the Profit Opportunity Recommendation (POR) scores
below which country should the CEO of Ainsworth avoid? POR Scores: Switzerland - 76
China - 58 Singapore - 72 India - 62 Russia - 43 - ✔✔Russia
, Which (if any) is a potential effect of bribery and corruption? - ✔✔2) All of these
options
Henry was given responsibility for the implementation of a global marketing strategy for
Ambrosia Inc., a major food manufacturing firm. One of the biggest problems Henry will
face in implementing such a strategy is: - ✔✔Identifying homogenous consumer
segments in various countries
Jackie, the CEO of US Textiles Inc. knew she had to get her company's manufacturing
costs down if the company was to survive the current global recession. As consumers
cut back spending on clothing her company was being forced to compete on price with
manufacturers in China. The company's US-based plant was not competitive based on
relatively high labour costs. As a consultant to US Textiles you would advise Jackie to: -
✔✔Relocate the company's manufacturing plant to a foreign trade zone in Mexico
When a market may require a drastically simplified version of the firm's product due to
lack of purchasing power or usage conditions, this is known as: - ✔✔Backward
innovation
When Canadian grape growers lobbied the federal government for time to adjust to the
Canada-US Free Trade Agreement they were using the: - ✔✔Employment argument
Jeff is a 'hard-nosed' Canadian executive who represents his company Accelerated
Technologies in high stakes joint venture negotiations. Despite his years of experience
Jeff was taken aback recently when representatives for the other negotiating team did
nothing and said nothing for long periods during a critical negotiating session. Jeff did
not know what to make of their reaction and was very concerned that a deal would not
be reached. Jeff was most likely working in: - ✔✔Japan
The Mauritius government is interested in attracting additional foreign investment and
in creating employment. Government officials are considering a plan to allow foreign
Correct Answers
Which is not a form of government export promotion? - ✔✔Establishing voluntary
export restrictions on local firms
Raymond and William had completed their foreign market entry analysis. They were just
about ready to make a recommendation to the Board on which country the company
should enter next. William recalled, however, that the last time they had conducted
such an analysis they did not factor in corruption levels. This omission created serious
problems for the company as the constant requests for bribes made day to day
operations in the country difficult. Below is a shortlist of countries Raymond and William
are considering entering with their TI corruption scores. Ignoring possible
methodological problems if perceived corruption level is the only deciding factor, which
country should be entered? Transparency International (TI) Corruption Perception Index
(2011) Denmark - 9.4 New Zealand - 9.5 Trinidad - 3.2 Iraq - 1.8 Somalia - 1.0 - ✔✔3)
New Zealand
LCD Inc., a privately owned Asian company, had developed a revolutionary technology
which significantly improved the screen resolution of the video iPod and PDAs. The firm
was interested in penetrating the North American market but did not have the capital to
set up manufacturing facilities to produce its own line of these hand held devices. LCD
knew that other firms were doing research in this area and may soon have a competing
technology. As a consultant to LCD you would recommend: - ✔✔2) Licensing the
technology to a manufacturer of hand held devices
The CEO of Ainsworth Inc. was committed to global expansion. Ainsworth was, however,
a new firm and had no track record operating outside of Canada. The CEO was
particularly concerned about political risk and the impact it could have on the firm's
expansion plans. Based only on the Profit Opportunity Recommendation (POR) scores
below which country should the CEO of Ainsworth avoid? POR Scores: Switzerland - 76
China - 58 Singapore - 72 India - 62 Russia - 43 - ✔✔Russia
, Which (if any) is a potential effect of bribery and corruption? - ✔✔2) All of these
options
Henry was given responsibility for the implementation of a global marketing strategy for
Ambrosia Inc., a major food manufacturing firm. One of the biggest problems Henry will
face in implementing such a strategy is: - ✔✔Identifying homogenous consumer
segments in various countries
Jackie, the CEO of US Textiles Inc. knew she had to get her company's manufacturing
costs down if the company was to survive the current global recession. As consumers
cut back spending on clothing her company was being forced to compete on price with
manufacturers in China. The company's US-based plant was not competitive based on
relatively high labour costs. As a consultant to US Textiles you would advise Jackie to: -
✔✔Relocate the company's manufacturing plant to a foreign trade zone in Mexico
When a market may require a drastically simplified version of the firm's product due to
lack of purchasing power or usage conditions, this is known as: - ✔✔Backward
innovation
When Canadian grape growers lobbied the federal government for time to adjust to the
Canada-US Free Trade Agreement they were using the: - ✔✔Employment argument
Jeff is a 'hard-nosed' Canadian executive who represents his company Accelerated
Technologies in high stakes joint venture negotiations. Despite his years of experience
Jeff was taken aback recently when representatives for the other negotiating team did
nothing and said nothing for long periods during a critical negotiating session. Jeff did
not know what to make of their reaction and was very concerned that a deal would not
be reached. Jeff was most likely working in: - ✔✔Japan
The Mauritius government is interested in attracting additional foreign investment and
in creating employment. Government officials are considering a plan to allow foreign
