SEVI 3013 Chapter 7 UPDATED ACTUAL
Exam Questions and CORRECT Answers
Which of the following characterize globalization? (Check all that apply.) - CORRECT
ANSWER - an increase in the exchange of money, ideas, and information
a growing similarity of laws, rules, norms, values, and ideas across countries
an increase in international exchange, including trade in goods and services
The ______ is a framework for explaining why countries foster successful multinational
corporations. - CORRECT ANSWER - diamond of national advantage
Which of the following are examples of factor endowments? (Check all that apply.) - CORRECT
ANSWER - supporting infrastructure of a country such as transportation and communication
systems
factors of production, such as skilled human resources, land, and capital
Which of the following statements about demand conditions are correct? (Check all that apply.) -
CORRECT ANSWER - Industries that have demanding customers often are able to anticipate
future global demand conditions and proactively respond to these requirements.
They refer to the demands that consumers place on an industry for goods and services.
When consumers place high demands on firms, firms are motivated to meet these high standards.
Which of the following statements about related and supporting industries' role in creating a
diamond of national advantage are correct? (Check all that apply.) - CORRECT ANSWER -
Close working relationships with suppliers help develop competitive advantages, for example
through joint research and development.
Related and supporting industries enable firms to manage their supply chain's inbound logistics
more effectively.
Competitive supplier bases often decrease manufacturing costs.
, ______ is the rise of market capitalism around the world. - CORRECT ANSWER -
Globalization
______ are the conditions in the nation governing how companies are created, organized, and
managed as well as the nature of domestic rivalry. - CORRECT ANSWER - Firm strategy,
structure, and rivalry
Which of the following are factors of the diamond of national advantage? (Check all that apply.)
- CORRECT ANSWER - demand conditions
related and supporting industries
factor endowments
firm strategy, structure, and rivalry
What can be concluded about companies that are successful globally? - CORRECT
ANSWER - They first succeeded in highly competitive domestic markets.
______ are a nation's position in factors of production. - CORRECT ANSWER - Factor
endowments
Which of the following are motivations for international expansion? - CORRECT ANSWER -
To increase the company's market size
______ are the nature of home-market demand for the industry's product or service. - CORRECT
ANSWER - Demand conditions
Which of the following are the main types of risk when expanding internationally? (Check all
that apply.) - CORRECT ANSWER - economic
currency
political
Exam Questions and CORRECT Answers
Which of the following characterize globalization? (Check all that apply.) - CORRECT
ANSWER - an increase in the exchange of money, ideas, and information
a growing similarity of laws, rules, norms, values, and ideas across countries
an increase in international exchange, including trade in goods and services
The ______ is a framework for explaining why countries foster successful multinational
corporations. - CORRECT ANSWER - diamond of national advantage
Which of the following are examples of factor endowments? (Check all that apply.) - CORRECT
ANSWER - supporting infrastructure of a country such as transportation and communication
systems
factors of production, such as skilled human resources, land, and capital
Which of the following statements about demand conditions are correct? (Check all that apply.) -
CORRECT ANSWER - Industries that have demanding customers often are able to anticipate
future global demand conditions and proactively respond to these requirements.
They refer to the demands that consumers place on an industry for goods and services.
When consumers place high demands on firms, firms are motivated to meet these high standards.
Which of the following statements about related and supporting industries' role in creating a
diamond of national advantage are correct? (Check all that apply.) - CORRECT ANSWER -
Close working relationships with suppliers help develop competitive advantages, for example
through joint research and development.
Related and supporting industries enable firms to manage their supply chain's inbound logistics
more effectively.
Competitive supplier bases often decrease manufacturing costs.
, ______ is the rise of market capitalism around the world. - CORRECT ANSWER -
Globalization
______ are the conditions in the nation governing how companies are created, organized, and
managed as well as the nature of domestic rivalry. - CORRECT ANSWER - Firm strategy,
structure, and rivalry
Which of the following are factors of the diamond of national advantage? (Check all that apply.)
- CORRECT ANSWER - demand conditions
related and supporting industries
factor endowments
firm strategy, structure, and rivalry
What can be concluded about companies that are successful globally? - CORRECT
ANSWER - They first succeeded in highly competitive domestic markets.
______ are a nation's position in factors of production. - CORRECT ANSWER - Factor
endowments
Which of the following are motivations for international expansion? - CORRECT ANSWER -
To increase the company's market size
______ are the nature of home-market demand for the industry's product or service. - CORRECT
ANSWER - Demand conditions
Which of the following are the main types of risk when expanding internationally? (Check all
that apply.) - CORRECT ANSWER - economic
currency
political
