BUSA 4000 Final Exam Review Questions And Answers

BUSA 4000 Final Exam Review Questions And Answers Which of the following has contributed to the rapid growth of trade among nations EXCEPT - ANSWER -The increase in trade barriers Which of the following types of risk is also known as political risk? - ANSWER -Country Risk Which of the following is NOT an example of a cross-cultural risk factor? - ANSWER - Cost of production Fluctuating exchange rates are an example of which of the following? - ANSWER - Currency Risk Businesses that directly initiate international business transactions are known as - ANSWER -Focal firms Firms that emphasize global integration make and sell - ANSWER -Products that require minimal adaption Graham Technologies is a UK-based consumer electronics manufacturer. The company markets netbooks, smartphones, laptops, and desktops in the international market and each product division operates as a stand-alone profit center with substantial autonomy. This is an example of a - ANSWER -Product structure Which of the following is necessary for local responsiveness to effectively increase a firm's competitiveness? - ANSWER -Local managers need to be able to make decisions based on local needs Which of the following is a disadvantage of a geographic area structure? - ANSWER - Geographic area managers potential lack of global orientation for developing and managing products Which of the following activities would be considered last by a manager while developing strategies? - ANSWER -Deciding how best to contend with competitors A _____ strategy is characterized by substantial control over country operations by headquarters in order to increase efficiency and integration - ANSWER -Global In which of the following are substantial autonomy and decision-making authority delegated to a firm's subsidiaries around the world? - ANSWER -Decentralized Approach GramTech Solutions is a software develoment based in the US. The firm's CEO, David Ghaster, wants to open an outlet in India. Being a visionary leader, he would - ANSWER -Acquire managers with an international mind-set, showing an openness to and awareness of diversity across cultures A global industry is one in which competition is on a regional or worldwide scale. Which of the following is more commonly a global industry? - ANSWER -Automobiles A firm would be compelled to seek global integration when it has to - ANSWER - Capitalize on converging consumer trends and universal needs Which of the following tasks should a shoe manufacturing company perform first if it needs to assess the global market opportunity? - ANSWER -Analyze the firm's readiness to internationalize Advances in communications and transportation technology have changed the internationalization tendencies of firms by - ANSWER -Reducing the risk and difficulty of doing business in foreign markets When using the process of gradual elimination to screen potential country markets, a researcher should first - ANSWER -Obtain general information on macro-level indicators According to the Market Potential Indicators Index, _____ is an indicator of market size - ANSWER -Urban population and electricity consumption The size and growth rate of a country's middle class is termed as - ANSWER -Market Consumption Capacity Which of the following should be done by a company planning to internationalize when it assesses market industry potential? - ANSWER -Develop a 3-5 year forecast of industry sales for each target market In order to estimate industry market potential, managers most likely require - ANSWER -Market size and growth rates specific to the industry The estimate of the share of annual industry sales the firm expects to generate in a particular target market is known as - ANSWER -Company Sales Potential ____ is used by some firms to gauge long-term sales potential without fully committing to a foreign market - ANSWER -Test Marketing Trade audits may provide managers insight regarding - ANSWER -Competitors' offerings and pricing A global market opportunity is a favorable combination of circumstances, locations, or timing that offer prospects for designing new products for the domestic market - ANSWER -False Licensing partners are independent businesses abroad that acquire rights and skills from the focal firms to conduct local operations - ANSWER -False International business is defined as the performance of _____ activities by firms across national borders - ANSWER -Trade and Investment Which of the following best characterizes the development of international business? - ANSWER -It has existed in some form for centuries _____ refers to the transfer of assets to another country of the acquisition of assets in that country - ANSWER -International Investment Which of the following would NOT be considered an example of foreign direct investment (FDI)? - ANSWER -Cross border purchase of stocks ____ is the total value of products and services produced in a country over the course of a year - ANSWER -GDP Which of the following is an advantage of exporting? - ANSWER -Increases overall sales volume, improves market share If a computer contains a microprocessor from Costa Rica and a hard disk drive from the Philippines, the computer manufacturer in the US is using - ANSWER -Global sourcing The relocation of a business process of entire manufacturing facility to a foreign country is known as - ANSWER -Offshoring The strategic view of global sourcing suggests that - ANSWER -Offshore talent increases productivity Which of the following represents an infrastructural factor that firms must consider when selecting an FDI location? - ANSWER -Availability and quality of local manufacturing Which of the following is an example of a market seeking motive for FDI? - ANSWER - Firm follows its key customer abroad How does the acquisition of a foreign company most likely benefit a focal firm in the foreign market? - ANSWER -Extend its market reach through readily available distribution network