GMS 522 FULL SOLUTION QUESTIONS AND
ACCURATE ANSWERS PREPARATION
RESOURCE
●● Jane had finally convinced the Board of Directors to pursue
international marketing activities in the developing world. While the
Board agreed Jane was told that in order to limit the risk of failure she
had to focus on those countries with higher levels of social and
economic development. In order to identify such countries Jane should
use:
Answer: The Physical Quality of Life Index
●● The concept of ethnocentrism predicts what beliefs consumers will
have based on a predisposed set of criteria which scientists have proven
are universal in all cultures. T/F
Answer: FALSE
●● Companies interested in indirect exporting may find themselves
approached by a(n) ______________________ based in their own home
country working on behalf of a foreign buyer.
Answer: Export buying agent
●● Bob worked for a conservative and well-financed Canadian
manufacturing company. The firm produced innovative high-capacity
,circuit boards (HCCB) for use in electronic equipment. As head of
international marketing Bob was responsible for increasing sales outside
the Canadian market and he had selected Europe as the company's
strategic focus. He was, however, concerned that a number of major
competitors were also targeting the European HCCB market. Bob
desperately wanted to be the first-mover in this space but was aware that
rapid expansion could lead to a loss of control. Given the above, Bob
would most likely pursue:
Answer: acquisition of an existing European manufacturer
●● Data on the KOF globalization index are presented below. Which
country would be considered the least integrated into the global
economy? Summary KOF Scores: US - 74.88 Canada - 85.53 China -
59.37 Trinidad - 58.34 Rwanda - 39.54
Answer: Rwanda
●● Export management companies are firms that assist other firms in
marketing their products in foreign markets. What is the generic term for
such companies?
Answer: Intermediaries
●● Voluntary export restraints have been used mainly in areas such as
textiles, automobiles, and steel and are intended to:
Answer: Help companies in the importing nation survive
, ●● Which theory has been criticized for its linear approach to the
internationalization process?
Answer: Uppsala Model
●● The form of economic integration where countries remove all
barriers to trade among themselves but each country maintains its own
trade policy towards non-members is called:
Answer: A free trade area
●● According to Dunning's OLI Framework a firm's foreign investment
decisions are driven by:
Answer: Ownership, Location and Internalization factors
●● Ainsworth, John and Peter are executives of a major petroleum
company headquartered in Calgary. They were very concerned about the
investment they had made in the Bolivian energy sector. News reports
indicated that the Bolivian government had sent in the army to take over
the operation of all foreign owned oil companies. There was little the
executives could do but hope that the government's intention was
_______________ not _______________ and that their company would
at least receive some compensation.
Answer: Expropriation, Confiscation
●● Sweetie Inc, a global manufacturer of candy, was recently forced to
relocate its operations from southern Ontario to Mexico. While some
importation was allowed new rules introduced in Canada now placed
ACCURATE ANSWERS PREPARATION
RESOURCE
●● Jane had finally convinced the Board of Directors to pursue
international marketing activities in the developing world. While the
Board agreed Jane was told that in order to limit the risk of failure she
had to focus on those countries with higher levels of social and
economic development. In order to identify such countries Jane should
use:
Answer: The Physical Quality of Life Index
●● The concept of ethnocentrism predicts what beliefs consumers will
have based on a predisposed set of criteria which scientists have proven
are universal in all cultures. T/F
Answer: FALSE
●● Companies interested in indirect exporting may find themselves
approached by a(n) ______________________ based in their own home
country working on behalf of a foreign buyer.
Answer: Export buying agent
●● Bob worked for a conservative and well-financed Canadian
manufacturing company. The firm produced innovative high-capacity
,circuit boards (HCCB) for use in electronic equipment. As head of
international marketing Bob was responsible for increasing sales outside
the Canadian market and he had selected Europe as the company's
strategic focus. He was, however, concerned that a number of major
competitors were also targeting the European HCCB market. Bob
desperately wanted to be the first-mover in this space but was aware that
rapid expansion could lead to a loss of control. Given the above, Bob
would most likely pursue:
Answer: acquisition of an existing European manufacturer
●● Data on the KOF globalization index are presented below. Which
country would be considered the least integrated into the global
economy? Summary KOF Scores: US - 74.88 Canada - 85.53 China -
59.37 Trinidad - 58.34 Rwanda - 39.54
Answer: Rwanda
●● Export management companies are firms that assist other firms in
marketing their products in foreign markets. What is the generic term for
such companies?
Answer: Intermediaries
●● Voluntary export restraints have been used mainly in areas such as
textiles, automobiles, and steel and are intended to:
Answer: Help companies in the importing nation survive
, ●● Which theory has been criticized for its linear approach to the
internationalization process?
Answer: Uppsala Model
●● The form of economic integration where countries remove all
barriers to trade among themselves but each country maintains its own
trade policy towards non-members is called:
Answer: A free trade area
●● According to Dunning's OLI Framework a firm's foreign investment
decisions are driven by:
Answer: Ownership, Location and Internalization factors
●● Ainsworth, John and Peter are executives of a major petroleum
company headquartered in Calgary. They were very concerned about the
investment they had made in the Bolivian energy sector. News reports
indicated that the Bolivian government had sent in the army to take over
the operation of all foreign owned oil companies. There was little the
executives could do but hope that the government's intention was
_______________ not _______________ and that their company would
at least receive some compensation.
Answer: Expropriation, Confiscation
●● Sweetie Inc, a global manufacturer of candy, was recently forced to
relocate its operations from southern Ontario to Mexico. While some
importation was allowed new rules introduced in Canada now placed
