GMS Test Bank 7 questions with 100%
correct answers passed
Which of the following is considered a reactive motivation to go international? - correct answer
✔✔Saturated domestic markets
Some companies may skip one or more stages in the process of internationalization e.g. transitioning
from exporting directly to foreign production. What is this phenomenon called? - correct answer
✔✔Leapfrogging
. Small, technology-driven companies with innovative products and which operate in a range of foreign
countries almost from inception are described as being: - correct answer ✔✔Born global
With a __________________ strategy the company begins the internationalization process by
establishing operations in a nearby country which is culturally similar and at the same level of economic
development. - correct answer ✔✔Waterfall
With a _______________ internationalization strategy country selection is based on market potential
and not psychic distance. - correct answer ✔✔Sprinkler
Which theory has been criticized for its linear approach to the internationalization process? - correct
answer ✔✔Uppsala model
One implication of the Uppsala model is that the smaller the psychic distance between the home and
host countries the more likely it is that the firm will be successful in the new environment. True/False? -
correct answer ✔✔True
In the country selection process the objective of macro-segmentation is to develop and apply
segmentation criteria which allow the marketing manager to screen a large number of potential
candidate countries. True/False? - correct answer ✔✔True
correct answers passed
Which of the following is considered a reactive motivation to go international? - correct answer
✔✔Saturated domestic markets
Some companies may skip one or more stages in the process of internationalization e.g. transitioning
from exporting directly to foreign production. What is this phenomenon called? - correct answer
✔✔Leapfrogging
. Small, technology-driven companies with innovative products and which operate in a range of foreign
countries almost from inception are described as being: - correct answer ✔✔Born global
With a __________________ strategy the company begins the internationalization process by
establishing operations in a nearby country which is culturally similar and at the same level of economic
development. - correct answer ✔✔Waterfall
With a _______________ internationalization strategy country selection is based on market potential
and not psychic distance. - correct answer ✔✔Sprinkler
Which theory has been criticized for its linear approach to the internationalization process? - correct
answer ✔✔Uppsala model
One implication of the Uppsala model is that the smaller the psychic distance between the home and
host countries the more likely it is that the firm will be successful in the new environment. True/False? -
correct answer ✔✔True
In the country selection process the objective of macro-segmentation is to develop and apply
segmentation criteria which allow the marketing manager to screen a large number of potential
candidate countries. True/False? - correct answer ✔✔True
