BUSA 4000 Final Exam Review Questions And ANSWERs

BUSA 4000 Final Exam Review Questions And ANSWERs 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 When a firm allows others to use an entire business system in exchange for compensation, the arrangement is known as - ANSWER -Franchising Which of the following is provided by the licensor in a licensing agreement? - ANSWER -A combination of intellectual property and technical information and assistance