Chap 2 (T/F)

The dollar value of exports increased by 28 times from 1980 to 2015, but when inflation's effect is removed, the level of exports has only doubled.

• True

• False

The largest exporters and importers result in a fairly high proportion of overall merchandise trade of both exports and imports.

• True

• False

The extensive distribution system is one reason Japan sells more to developed nations than most developed nations do.

• True

• False

There is a fine line between portfolio investment and direct investment due to the growing number of international mergers, and acquisitions.

• True

• False

Engaging in foreign trade is typically less costly and less risky than making a direct investment in foreign markets.

• True

• False

Before a firm decides to compete internationally, it must select its strategy and choose a mode of entry into international markets.

• True

• False

One reason why firms pursue international opportunities is to extend the product's life cycle.

• True

• False

A reason that firms use international strategies is to secure needed resources, especially minerals and energy.

• True

• False

Coca Cola and PepsiCo are examples of firms that have found it unnecessary to aggressively pursue international strategies because of extensive growth opportunities available in the U.S. market.

• True

• False

Multinational firms have many opportunities to learn from their experiences in international markets, so they do not have to establish R&D system.

• True

• False