BUSN 3001 Exam Questions and Answers Latest Update 2025-2026
Nelson Concrete recently opened a production plant in the Middle East after learning there were no
Competitive firms in that area - AnswersDemonstration of first-over advantage
What are the three basic decisions a firm make - Answersmarket to enter, timing of entrance and the
scale
The cost of risk associated with doing business in London would be considered ___________ because
the country is economically adavanced and politically stable - AnswersLow
Conrad's U.S. based company entered the European market long after its competitors had established
themselves. What kind of entry is this? - AnswersLate Entry
Kettle-Bright Corp. was the first company to introduce electric teapots in South America. The company
had to establish production standards and educate customers about the benefits of the product which
cost hundreds of thousands of dollars to do. These expenses are examples of
___________________________. - AnswersFirst- Mover Disadvantages
Jameson Machinery Inc. wants to release their newest equipment in the South American market before
other companies in order to establish the Jameson brand. In other words, the company wants to benefit
from _____________________. - AnswersFirst-mover advantages
What three basic decisions must firms evaluate when considering foreign expansion? - AnswersWhen to
enter markets, on what scale to enter markets, and which markets to enter.
Companies that want to have the least amount of risk when pursuing business in a foreign country
should consider countries that are_______________. - AnswersPolitically Stable
What is the term used for when one company enters markets before its competitors? - AnswersEarly
Entry
Pioneering cost are associated with _____________ - AnswersFirst-mover disadvantages
Late entrants to a market can benefit from the pioneering costs associated with early entry. What are
two of those benefits? - AnswersLearning from the mistakes made by early entrants and Building on
existing consumer education about the product
A firm enters a market on a _____________ scale when it commits significant resources to this effort -
AnswersLarge
Entering a foreign market on a significant scale is an example of? - AnswersMajor Strategic Commitment
by a company
, When entering a global market using a__________________scale entry strategy, a firm may be able to
capture first-mover advantages associated with scale economies. - AnswersLarge
A company that enters a foreign market on a large scale must consider the lack of _____________
associated with significant commitments. - AnswersFlexibility
Costs that companies entering a market early have to pay, but which firms late to the market do not
have to bear, are called? - AnswersPioneering cost
What are two reasons a firm would choose NOT to enter a new market on a large scale? - AnswersMay
not have the resources available to commit to a large-scale
and
Prefer to enter slowly so that it can become more familiar with the market
A commitment that is strategic has a short-term impact and is easy to reverse. - AnswersFalse
An early strategic commitment to large-scale entry may mean that a firm can benefit from what three
things? - AnswersDemand preemptions
Switching costs
Scale economies
Higher risk and lack of flexibility are drawbacks of what? - AnswersLarge-scale entry into a foreign
market
Using ________________-scale entry strategy to enter global markets, a firm can take time to gather
information to determine if it should enter the market on a more significant scale. - AnswersSmall
Foreign market entry decisions are based on the varying levels of risk and reward. - AnswersTrue
Foreign market entry decisions are based on the varying levels of risk and reward. - Answersexporting
A type of entry mode that is common in the chemical, pharmaceutical, and petroleum-refining
industries in which a contractor agrees to handle every detail of a project for a foreign client is called? -
Answers
A type of entry mode that is common in the chemical, pharmaceutical, and petroleum-refining
industries in which a contractor agrees to handle every detail of a project for a foreign client is called? -
AnswersA turnkey project
The strategy that allows firms to take their time to acquire information about a prospective market so
they can determine how best to enter the market is - AnswersSmall-scale entry
Entering a large developing nation like China before most other international companies, and entering
on a large scale, will be associated___________________ with levels of risk. - Answershigh
Nelson Concrete recently opened a production plant in the Middle East after learning there were no
Competitive firms in that area - AnswersDemonstration of first-over advantage
What are the three basic decisions a firm make - Answersmarket to enter, timing of entrance and the
scale
The cost of risk associated with doing business in London would be considered ___________ because
the country is economically adavanced and politically stable - AnswersLow
Conrad's U.S. based company entered the European market long after its competitors had established
themselves. What kind of entry is this? - AnswersLate Entry
Kettle-Bright Corp. was the first company to introduce electric teapots in South America. The company
had to establish production standards and educate customers about the benefits of the product which
cost hundreds of thousands of dollars to do. These expenses are examples of
___________________________. - AnswersFirst- Mover Disadvantages
Jameson Machinery Inc. wants to release their newest equipment in the South American market before
other companies in order to establish the Jameson brand. In other words, the company wants to benefit
from _____________________. - AnswersFirst-mover advantages
What three basic decisions must firms evaluate when considering foreign expansion? - AnswersWhen to
enter markets, on what scale to enter markets, and which markets to enter.
Companies that want to have the least amount of risk when pursuing business in a foreign country
should consider countries that are_______________. - AnswersPolitically Stable
What is the term used for when one company enters markets before its competitors? - AnswersEarly
Entry
Pioneering cost are associated with _____________ - AnswersFirst-mover disadvantages
Late entrants to a market can benefit from the pioneering costs associated with early entry. What are
two of those benefits? - AnswersLearning from the mistakes made by early entrants and Building on
existing consumer education about the product
A firm enters a market on a _____________ scale when it commits significant resources to this effort -
AnswersLarge
Entering a foreign market on a significant scale is an example of? - AnswersMajor Strategic Commitment
by a company
, When entering a global market using a__________________scale entry strategy, a firm may be able to
capture first-mover advantages associated with scale economies. - AnswersLarge
A company that enters a foreign market on a large scale must consider the lack of _____________
associated with significant commitments. - AnswersFlexibility
Costs that companies entering a market early have to pay, but which firms late to the market do not
have to bear, are called? - AnswersPioneering cost
What are two reasons a firm would choose NOT to enter a new market on a large scale? - AnswersMay
not have the resources available to commit to a large-scale
and
Prefer to enter slowly so that it can become more familiar with the market
A commitment that is strategic has a short-term impact and is easy to reverse. - AnswersFalse
An early strategic commitment to large-scale entry may mean that a firm can benefit from what three
things? - AnswersDemand preemptions
Switching costs
Scale economies
Higher risk and lack of flexibility are drawbacks of what? - AnswersLarge-scale entry into a foreign
market
Using ________________-scale entry strategy to enter global markets, a firm can take time to gather
information to determine if it should enter the market on a more significant scale. - AnswersSmall
Foreign market entry decisions are based on the varying levels of risk and reward. - AnswersTrue
Foreign market entry decisions are based on the varying levels of risk and reward. - Answersexporting
A type of entry mode that is common in the chemical, pharmaceutical, and petroleum-refining
industries in which a contractor agrees to handle every detail of a project for a foreign client is called? -
Answers
A type of entry mode that is common in the chemical, pharmaceutical, and petroleum-refining
industries in which a contractor agrees to handle every detail of a project for a foreign client is called? -
AnswersA turnkey project
The strategy that allows firms to take their time to acquire information about a prospective market so
they can determine how best to enter the market is - AnswersSmall-scale entry
Entering a large developing nation like China before most other international companies, and entering
on a large scale, will be associated___________________ with levels of risk. - Answershigh
