Gms 522 Final Exam Review With 100%
Correct And Verified Answers
Internationalization |- |Correct |Answer--defined |as |the |process |by |which
|firms |become |more |engaged |in |international |markets.
-the |process |involves |varying |degrees |of |financial |and |other |resource
|commitments |to |foreign |markets |and |of |course, |various |degrees |of |risk
Mode |of |Entry |- |Correct |Answer-central |to |the |process |of
|internationalization |is |the |selection |of |an |entry |mode. |These |range |from
|low |commitment |modes |such |as |exporting |high |commitment |modes
|such |as |foreign |direct |investment
Motivation |- |Correct |Answer-the |motivation |for |internationalization |may
|either |be |proactive |(firm |wants |to) |or |reactive |(firm |has |little |choice)
Uppsala |or |U |model |- |Correct |Answer-the |firm |first |expands |to |a
|psychically |close |market |and |having |become |familiar |with |that |market,
|will |target |slightly |more |distant |markets. |experiential |knowledge |is |the
|major |driver |of |its |pattern |of |internationalization. |The |Uppsala |model
|has |been |criticized |for |its |linear |approach |to |the |internationalization
|process
Dunnings |OLI |framework |- |Correct |Answer-firms |expand |abroad |to
|capitalize |on |ownership, |location |and |internalization |advantages
Advantages |of |Dunnings |OLI |framework |- |Correct |Answer--ownership |of
|foreign |assets |will |confer |on |the |firm |a |competitive |advantage |in |the
|foreign |market |which |is |not |enjoyed |by |competing |firms |that |do |not |own
|such |assets
-location |confers |advantages |in |terms |of |tax |or |other |investment
|incentives |offered |by |the |gov't |of |the |host |country |or |a |more |favorable
|industrial |relations |climate |for |the |firm's |operations
-internalization |of |firm-specific |advantages |such |as |proprietary
|technology |confers |benefits |to |the |firm |over |alternatives |such |as
|licensing
,Springboard |or |latecomer |perspective |- |Correct |Answer-emerging
|market |firms |internationalize |in |order |to |overcome |limitations |inherent
|in |their |home-country |environment, |such |as |small |market |size,
|institutional |immaturity |or |a |relatively |unsophisticated |consumer |base.
|To |accomplish |this |firms |aggressively |acquire |strategic |assets |from
|MNCs |in |developed |countries
Systematic |four-step |process |- |Correct |Answer-1)Macro |segmentation
2)Preliminary |screening
3)Secondary |screening
4)Final |security |selection
Macro |Segmentation |- |Correct |Answer--develop |segmentation |criteria |
-apply |to |group |countries
Preliminary |screening |- |Correct |Answer--develop |additional |criteria
-apply |to |reduce |the |# |of |candidate |countries
Secondary |screening |- |Correct |Answer--firm |assesses |its |own
|capabilities |relative |to |the |market
Final |security |selection |- |Correct |Answer--conduct |site |visit
Selecting |Foreign |Markets |- |Correct |Answer-the |end |result |of |the
|process |is |the |selection |of |one |country |from |the |universe |of |potential
|candidates |by |a |process |of |elimination
International |consumer |segmentation |- |Correct |Answer-consumers |in
|cross-national |segments |may |have |more |in |common |with |their
|counterparts |in |other |countries |than |they |do |with |citizen |of |their |own
|countries. |If |this |is |the |case |a |two-stage |model |may |be |appropriate |in
|which |segmentation |is |undertaken |at |both |the |country |and |consumer
|levels
Country |Level |Screening |- |Correct |Answer-macro-segmentation |based
|on |overall |market |attractiveness
, Consumer |level |screening |- |Correct |Answer-micro-segmentation |based
|on |personal |and |societal |values
Types |of |Entry |modes |- |Correct |Answer--export
-intermediate
-hierarchical
Export |Modes |- |Correct |Answer-low |risk-low |return |modes |which |provide
|limited |control |for |the |exporting |firm
Intermediate |Modes |- |Correct |Answer-modes |which |provide |for |the
|sharing |of |the |risks |and |rewards |of |market |entry |commensurate |with
|the |share |of |ownership |of |each |partner
Hierarchical |Modes |- |Correct |Answer-modes |in |which |firm |has |complete
|control |of |the |operation |but |also |exposure |to |a |higher |level |of |risk
Exporting |- |Correct |Answer-involves |the |manufacture |of |a |product |in |one
|country |and |its |sale |in |one |or |more |foreign |countries
Two |forms |of |exporting |- |Correct |Answer--direct
-indirect
Direct |Exporting |- |Correct |Answer-exporters |transact |with |an
|intermediary |based |in |the |foreign |market
Indirect |Exporting |- |Correct |Answer-exporter |transacts |with |an
|intermediary |based |in |its |home |country. |This |intermediary |takes
|responsibility |for |getting |the |exporter's |product |into |foreign |country.
|Domestic |transaction |from |standpoint |of |the |exporter
Advantages |to |exporting |- |Correct |Answer--requires |little |by |way |of
|managerial |skills |or |knowledge |of |the |foreign |market
-carries |with |it |minimal |risk |for |the |firm
-does |not |involve |significant |costs |for |the |firm
Disadvantages |to |exporting |- |Correct |Answer--lower |returns |relative |to
|other |entry |modes
Correct And Verified Answers
Internationalization |- |Correct |Answer--defined |as |the |process |by |which
|firms |become |more |engaged |in |international |markets.
-the |process |involves |varying |degrees |of |financial |and |other |resource
|commitments |to |foreign |markets |and |of |course, |various |degrees |of |risk
Mode |of |Entry |- |Correct |Answer-central |to |the |process |of
|internationalization |is |the |selection |of |an |entry |mode. |These |range |from
|low |commitment |modes |such |as |exporting |high |commitment |modes
|such |as |foreign |direct |investment
Motivation |- |Correct |Answer-the |motivation |for |internationalization |may
|either |be |proactive |(firm |wants |to) |or |reactive |(firm |has |little |choice)
Uppsala |or |U |model |- |Correct |Answer-the |firm |first |expands |to |a
|psychically |close |market |and |having |become |familiar |with |that |market,
|will |target |slightly |more |distant |markets. |experiential |knowledge |is |the
|major |driver |of |its |pattern |of |internationalization. |The |Uppsala |model
|has |been |criticized |for |its |linear |approach |to |the |internationalization
|process
Dunnings |OLI |framework |- |Correct |Answer-firms |expand |abroad |to
|capitalize |on |ownership, |location |and |internalization |advantages
Advantages |of |Dunnings |OLI |framework |- |Correct |Answer--ownership |of
|foreign |assets |will |confer |on |the |firm |a |competitive |advantage |in |the
|foreign |market |which |is |not |enjoyed |by |competing |firms |that |do |not |own
|such |assets
-location |confers |advantages |in |terms |of |tax |or |other |investment
|incentives |offered |by |the |gov't |of |the |host |country |or |a |more |favorable
|industrial |relations |climate |for |the |firm's |operations
-internalization |of |firm-specific |advantages |such |as |proprietary
|technology |confers |benefits |to |the |firm |over |alternatives |such |as
|licensing
,Springboard |or |latecomer |perspective |- |Correct |Answer-emerging
|market |firms |internationalize |in |order |to |overcome |limitations |inherent
|in |their |home-country |environment, |such |as |small |market |size,
|institutional |immaturity |or |a |relatively |unsophisticated |consumer |base.
|To |accomplish |this |firms |aggressively |acquire |strategic |assets |from
|MNCs |in |developed |countries
Systematic |four-step |process |- |Correct |Answer-1)Macro |segmentation
2)Preliminary |screening
3)Secondary |screening
4)Final |security |selection
Macro |Segmentation |- |Correct |Answer--develop |segmentation |criteria |
-apply |to |group |countries
Preliminary |screening |- |Correct |Answer--develop |additional |criteria
-apply |to |reduce |the |# |of |candidate |countries
Secondary |screening |- |Correct |Answer--firm |assesses |its |own
|capabilities |relative |to |the |market
Final |security |selection |- |Correct |Answer--conduct |site |visit
Selecting |Foreign |Markets |- |Correct |Answer-the |end |result |of |the
|process |is |the |selection |of |one |country |from |the |universe |of |potential
|candidates |by |a |process |of |elimination
International |consumer |segmentation |- |Correct |Answer-consumers |in
|cross-national |segments |may |have |more |in |common |with |their
|counterparts |in |other |countries |than |they |do |with |citizen |of |their |own
|countries. |If |this |is |the |case |a |two-stage |model |may |be |appropriate |in
|which |segmentation |is |undertaken |at |both |the |country |and |consumer
|levels
Country |Level |Screening |- |Correct |Answer-macro-segmentation |based
|on |overall |market |attractiveness
, Consumer |level |screening |- |Correct |Answer-micro-segmentation |based
|on |personal |and |societal |values
Types |of |Entry |modes |- |Correct |Answer--export
-intermediate
-hierarchical
Export |Modes |- |Correct |Answer-low |risk-low |return |modes |which |provide
|limited |control |for |the |exporting |firm
Intermediate |Modes |- |Correct |Answer-modes |which |provide |for |the
|sharing |of |the |risks |and |rewards |of |market |entry |commensurate |with
|the |share |of |ownership |of |each |partner
Hierarchical |Modes |- |Correct |Answer-modes |in |which |firm |has |complete
|control |of |the |operation |but |also |exposure |to |a |higher |level |of |risk
Exporting |- |Correct |Answer-involves |the |manufacture |of |a |product |in |one
|country |and |its |sale |in |one |or |more |foreign |countries
Two |forms |of |exporting |- |Correct |Answer--direct
-indirect
Direct |Exporting |- |Correct |Answer-exporters |transact |with |an
|intermediary |based |in |the |foreign |market
Indirect |Exporting |- |Correct |Answer-exporter |transacts |with |an
|intermediary |based |in |its |home |country. |This |intermediary |takes
|responsibility |for |getting |the |exporter's |product |into |foreign |country.
|Domestic |transaction |from |standpoint |of |the |exporter
Advantages |to |exporting |- |Correct |Answer--requires |little |by |way |of
|managerial |skills |or |knowledge |of |the |foreign |market
-carries |with |it |minimal |risk |for |the |firm
-does |not |involve |significant |costs |for |the |firm
Disadvantages |to |exporting |- |Correct |Answer--lower |returns |relative |to
|other |entry |modes
