International Business Scenarios

Front

In a business class, Mason and Grace are discussing how different factors can influence the success of a business alliance. They mention equity, learning and experience, relational capabilities, and nationality as potential factors. These factors likely to influence alliance performance.

Back

True

Answer explanation

The statement is true because equity, learning and experience, relational capabilities, and nationality are recognized factors that can significantly impact the performance of alliances.

Front

Ava's startup can expand internationally while remaining in the domestic market through indirect exports.

Back

True

Answer explanation

True. Entrepreneurial firms can engage in indirect exports by utilizing intermediaries or agents, allowing them to reach international markets while primarily operating in their domestic market.

Front

Benjamin is studying international business and learns that foreign acquisitions are an example of an FDI entry into foreign markets.

Back

True

Answer explanation

True. Foreign acquisitions involve a company from one country purchasing assets or shares of a company in another country, which is a form of Foreign Direct Investment (FDI) into foreign markets.

Front

Rohan states that one of the main objectives for establishing the WTO was to strengthen the trade dispute settlement mechanism. True or False?

Back

True

Answer explanation

True. One of the main objectives of the WTO is indeed to strengthen the trade dispute settlement mechanism, ensuring that trade disputes are resolved fairly and efficiently among member countries.

Front

Michael believes that market orientation is the effort to establish, maintain, and enhance relationships with customers. True or False?

Back

True

Answer explanation

True. Market orientation focuses on building strong relationships with customers, ensuring their needs and preferences are prioritized in business strategies.

Front

In a classroom discussion, Daniel mentioned that cultures with low uncertainty avoidance are more likely to resist change.

Back

False

Answer explanation

Cultures with low uncertainty avoidance are more open to change and innovation, as they are comfortable with ambiguity and uncertainty. Therefore, the statement is false.

Front

Elijah is studying the theory of national competitive advantage of industries. He learns that factor endowments is one of the four interacting aspects of this theory. True or False?

Back

True

Answer explanation

True. Factor endowments, which include resources like labor and capital, are indeed one of the four key aspects of the theory of national competitive advantage, highlighting their role in industry competitiveness.

Front

Emma believes that the basic concept of protectionism and mercantilism is the same. True or False?

Back

False

Answer explanation

The statement is false because protectionism focuses on restricting imports to protect domestic industries, while mercantilism emphasizes accumulating wealth through trade surplus and government intervention.

Front

In Daniel's community, cultural values and norms guide how people interact and make decisions. These are examples of informal institutions.

Back

True

Answer explanation

Cultural values and norms shape behavior and expectations within a society, making them key examples of informal institutions. Therefore, the statement is true.

Front

In a city, Mia and William own two different coffee shop chains. Collusion is more difficult between their chains with high market commonality than between chains with low market commonality.

Back

False

Answer explanation

Collusion is easier among firms with high market commonality because they have similar interests and competitive dynamics, making coordination more feasible. Therefore, the statement is false.