IBC FINAL2

If the textile industry in a nation is characterised by vigorous domestic rivalry, which observation of this nation's international competency is most likely to be true?

• The nation will have access to such basic factors of the textile industry as natural resources

• The nation's textile firms will have a competitive advantage in international trade

• The domestic customers of the textile firms will be less demanding

• The nation's textile industry will lack the advanced factors that are necessary to be internationally competent

Identify the risk of operating in a politically volatile environment.

• Receptive to international trade

• Limit profit repatriation

• Stable government leadership

Which of these factors are important to consider when entering new market?

• Security

• Infrastructure

• Intellectual property

• Privacy

Regarding the four components of the diamond, Porter contends that government

• Can influence the domestic demand conditions and the domestic rivalry components of the diamond but not the other 2 components

• can influence each of the four components of the diamond either positively or negatively.

• Can influence the factor endowments and the related and supporting industries components of the diamond but not the other 2 components

• has little or no effect on the four components that shape the environment in which the firms compete

Partnerships between a government and a host company in the context of foreign direct investment lead to ________.

• increased exploitation of workers in the home country

• domination of industries in the home country by large international firms

• increased market access for the host country

• increased control for the host country over its operations

Is collusion illegal? Discuss using the examples given in class yesterday about tacit and explicit collusion.

What is the purpose of a tradeshow in market research?

• To gather primary data through direct interaction with potential customers

• To observe competitors' products and strategies

• To conduct in-depth interviews with industry experts

• To analyze secondary data from published reports

Which observation about subsidies is true?

• Government subsidies must be paid for, typically by taxing individuals and corporations

• Subsidies are used to reduce exports from a sector, often for political reasons

• All subsidies are successful at increasing the international competitiveness of domestic producers

• Subsidies help foreign producers gain a competitive advantage over domestic producers

What is the role of a moderator in a focus group interview?

• To actively participate in the discussion and share personal opinions

• To record all conversations for transcription and analysis

• To guide the conversation, ask questions, and ensure all participants have a chance to speak

• To recruit participants and select the venue for the interview

Primary benefits from international trade include the following except.

• Learning other cultures

• Greater choice for goods and services

• Job creation

• Higher standards of living