FSU MAN4720 Study Guide
Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. An international diversification strategy is best described as a strategy through which a
firm:
Correct Answer: Expands the production and/or sales of its goods and/or services
across the borders of global regions and countries into a potentially large number of
geographic locations or markets
2. What is the primary advantage of a 'regionalization' strategy for a firm expanding
internationally?
Correct Answer: The firm is likely to encounter fewer trade barriers, the laws and
customs are better understood, and the product is easier to adapt to local markets
3. According to the text, a clothing manufacturer establishing a factory in a country with
lower labor costs is primarily leveraging which incentive for international expansion?
Correct Answer: Location advantage
4. The 'liability of foreignness' refers to a set of costs that firms face when entering foreign
markets. Which scenario best illustrates this concept?
Correct Answer: Disney suffered lawsuits in France at Disneyland Paris, because of
the lack of fit between its transferred personnel policies and the French employees
charged to enact them
5. What is the term for the trend, driven by a popular backlash in advanced economies,
that can hurt multinational companies' interests and lead to increased trade
restrictions?
, Correct Answer: Deglobalization
6. A firm that establishes R&D facilities in multiple international regions to absorb new
technical expertise and develop innovations is primarily taking advantage of which
international strategy incentive?
Correct Answer: Learning
7. What is the main purpose of establishing a global value chain?
Correct Answer: It is a set of interrelated activities involving companies from
multiple countries, coordinated by a particular firm in pursuit of a competitive advantage
8. The text suggests that for a multinational firm to successfully leverage its international
R&D investments, it must first have which of the following?
Correct Answer: A strong R&D system already in place to absorb knowledge
resulting from effective R&D activities
9. A government's instability, corruption, or potential to seize a company's foreign-based
assets are all primary examples of what type of risk?
Correct Answer: Political risk
10. How do trade agreements like the European Union (EU) and the United States-Mexico-
Canada Agreement (USMCA) typically influence firms' international strategies?
Correct Answer: They loosen restrictions on international strategies within this
region and provide greater opportunity for regional international strategies
11. A multinational mining company is evaluating an emerging economy for a new
operation. The country has a state-owned electrical utility known for frequent, long-
lasting power outages. According to the source material, this situation represents which
primary type of risk?
Correct Answer: Economic risk
12. According to the text, what is the primary reason that firms pursuing international
diversification often face increased management difficulty?
Correct Answer: Larger size, greater operational complexity, and increases in
geographic diversity make a firm more difficult to manage
Comprehensive Resource To Help You Ace 2026-2027 Exams
Includes Frequently Tested Questions With ELABORATED
100% Correct COMPLETE SOLUTIONS
Guaranteed Pass First Attempt!! Current Update!!
1. An international diversification strategy is best described as a strategy through which a
firm:
Correct Answer: Expands the production and/or sales of its goods and/or services
across the borders of global regions and countries into a potentially large number of
geographic locations or markets
2. What is the primary advantage of a 'regionalization' strategy for a firm expanding
internationally?
Correct Answer: The firm is likely to encounter fewer trade barriers, the laws and
customs are better understood, and the product is easier to adapt to local markets
3. According to the text, a clothing manufacturer establishing a factory in a country with
lower labor costs is primarily leveraging which incentive for international expansion?
Correct Answer: Location advantage
4. The 'liability of foreignness' refers to a set of costs that firms face when entering foreign
markets. Which scenario best illustrates this concept?
Correct Answer: Disney suffered lawsuits in France at Disneyland Paris, because of
the lack of fit between its transferred personnel policies and the French employees
charged to enact them
5. What is the term for the trend, driven by a popular backlash in advanced economies,
that can hurt multinational companies' interests and lead to increased trade
restrictions?
, Correct Answer: Deglobalization
6. A firm that establishes R&D facilities in multiple international regions to absorb new
technical expertise and develop innovations is primarily taking advantage of which
international strategy incentive?
Correct Answer: Learning
7. What is the main purpose of establishing a global value chain?
Correct Answer: It is a set of interrelated activities involving companies from
multiple countries, coordinated by a particular firm in pursuit of a competitive advantage
8. The text suggests that for a multinational firm to successfully leverage its international
R&D investments, it must first have which of the following?
Correct Answer: A strong R&D system already in place to absorb knowledge
resulting from effective R&D activities
9. A government's instability, corruption, or potential to seize a company's foreign-based
assets are all primary examples of what type of risk?
Correct Answer: Political risk
10. How do trade agreements like the European Union (EU) and the United States-Mexico-
Canada Agreement (USMCA) typically influence firms' international strategies?
Correct Answer: They loosen restrictions on international strategies within this
region and provide greater opportunity for regional international strategies
11. A multinational mining company is evaluating an emerging economy for a new
operation. The country has a state-owned electrical utility known for frequent, long-
lasting power outages. According to the source material, this situation represents which
primary type of risk?
Correct Answer: Economic risk
12. According to the text, what is the primary reason that firms pursuing international
diversification often face increased management difficulty?
Correct Answer: Larger size, greater operational complexity, and increases in
geographic diversity make a firm more difficult to manage
