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C211 SECOND OA QUIZZES | ACTUAL EXAM
QUESTIONS WITH VERIFIED ANSWERS
A currency board is a monetary authority that issues notes and coins convertible
into a key foreign currency at a _____ exchange rate.-correct-answer-Fixed
A manager arguing against currency hedging would most likely argue that _____.-
correct-answer-currency hedging eats into company profits
Liability of foreignness is _____.-correct-answer-the inherent disadvantage
foreign firms experience in host countries
Which of the following conforms to the notion put forward by the school of
thought associated with stage models?-correct-answer-Firms enter culturally
distant countries in later stages when they may gain more confidence
Which of the following is a first-mover advantage?-correct-answer-Avoidance of
clash with a dominant firm at home
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____ refers to the amount of resources committed to entering a foreign market.-
correct-answer-Scale of entry
The distinction between _____ is what defines an MNE from a firm that merely
exports or imports.-correct-answer-equity and non-equity modes of entry
Which of the following is a non-equity mode of entry?-correct-answer-Turnkey
projects
Which of the following entry modes is a type of strategic alliance?-correct-
answer-Licensing
Which of the following is an advantage of R&D contracts?-correct-answer-Ability
to tap into the best, cost-effective locations
Which of the following is true of indirect exports?-correct-answer-They export
through domestically based export intermediaries.
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A(n) _____ is a non-equity mode of entry used to build a longer-term presence by
building and then operating a facility for a period of time before transferring
operations to a domestic agency or firm.-correct-answer-BOT agreement
Greenfield operations are similar to acquisitions in that they are both examples of
_____.-correct-answer-wholly owned subsidiaries
The country-of-origin effect refers to _____.-correct-answer-the positive or
negative perception of firms and products from a certain country
The process of anticipating rivals' actions in order to both revise a firm's plan and
prepare to deal with rivals' response is called _____.-correct-answer-competitor
analysis
___ occurs when firms engage the same rivals in numerous markets.-correct-
answer-Multimarket competition
Which of the following industry characteristics contributes to collusion?-correct-
answer-Existence of an industry price leader
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Which of the following is defined as the degree of overlap between two rivals'
markets?-correct-answer-Market commonality
__ is an attack on a competitor's other markets if this competitor attacks a firm's
original market.-correct-answer-Cross-market retaliation
The act of setting prices below cost to eliminate rivals while intending to raise
them in the long run to make up for the initial losses is known as _____.-correct-
answer-predatory pricing
A _____ antirust policy would protect established firms that have already invested
and nurtured an industry from new entrants.-correct-answer-pro-incumben
Which combination of resource similarity and market commonality results in the
most intense competition?-correct-answer-High resource similarity, low market
commonality
Which of the following sets of words describes the initial set of actions a firm uses
to gain competitive advantage and the other firm's response to it?-correct-
answer-Attack, counterattack
C211 SECOND OA QUIZZES | ACTUAL EXAM
QUESTIONS WITH VERIFIED ANSWERS
A currency board is a monetary authority that issues notes and coins convertible
into a key foreign currency at a _____ exchange rate.-correct-answer-Fixed
A manager arguing against currency hedging would most likely argue that _____.-
correct-answer-currency hedging eats into company profits
Liability of foreignness is _____.-correct-answer-the inherent disadvantage
foreign firms experience in host countries
Which of the following conforms to the notion put forward by the school of
thought associated with stage models?-correct-answer-Firms enter culturally
distant countries in later stages when they may gain more confidence
Which of the following is a first-mover advantage?-correct-answer-Avoidance of
clash with a dominant firm at home
,2|Page
____ refers to the amount of resources committed to entering a foreign market.-
correct-answer-Scale of entry
The distinction between _____ is what defines an MNE from a firm that merely
exports or imports.-correct-answer-equity and non-equity modes of entry
Which of the following is a non-equity mode of entry?-correct-answer-Turnkey
projects
Which of the following entry modes is a type of strategic alliance?-correct-
answer-Licensing
Which of the following is an advantage of R&D contracts?-correct-answer-Ability
to tap into the best, cost-effective locations
Which of the following is true of indirect exports?-correct-answer-They export
through domestically based export intermediaries.
,3|Page
A(n) _____ is a non-equity mode of entry used to build a longer-term presence by
building and then operating a facility for a period of time before transferring
operations to a domestic agency or firm.-correct-answer-BOT agreement
Greenfield operations are similar to acquisitions in that they are both examples of
_____.-correct-answer-wholly owned subsidiaries
The country-of-origin effect refers to _____.-correct-answer-the positive or
negative perception of firms and products from a certain country
The process of anticipating rivals' actions in order to both revise a firm's plan and
prepare to deal with rivals' response is called _____.-correct-answer-competitor
analysis
___ occurs when firms engage the same rivals in numerous markets.-correct-
answer-Multimarket competition
Which of the following industry characteristics contributes to collusion?-correct-
answer-Existence of an industry price leader
, 4|Page
Which of the following is defined as the degree of overlap between two rivals'
markets?-correct-answer-Market commonality
__ is an attack on a competitor's other markets if this competitor attacks a firm's
original market.-correct-answer-Cross-market retaliation
The act of setting prices below cost to eliminate rivals while intending to raise
them in the long run to make up for the initial losses is known as _____.-correct-
answer-predatory pricing
A _____ antirust policy would protect established firms that have already invested
and nurtured an industry from new entrants.-correct-answer-pro-incumben
Which combination of resource similarity and market commonality results in the
most intense competition?-correct-answer-High resource similarity, low market
commonality
Which of the following sets of words describes the initial set of actions a firm uses
to gain competitive advantage and the other firm's response to it?-correct-
answer-Attack, counterattack
