Internacionalization class quiz

What is internationalization?

• Closure of operations abroad

• Reduction of costs in the local market

• Increase in national production

• Expansion of a company into international markets

What is a reason for market research?

• Obtain strategic assets

• Streamline existing operations

• Find new customers

• Access cheaper resources

What model suggests a sequential pattern of entry into foreign markets?

• Uppsala Model

• Dunning Model

• Product Life Cycle Model

• Transaction Cost Model

What is meant by 'psychic distance'?

• Differences in production costs

• Perception of differences between markets

• Difficulties in logistics

• Variations in consumer demand

What characterizes 'born global' companies?

• Globalization vision from the start

• Gradual expansion in the local market

• Exclusive focus on local products

• Dependence on national markets

What is 'outsourcing' in the context of internationalization?

• Use of own subsidiaries

• Hiring agents or distributors

• Internal production of goods

• Closure of international operations

What is sought with transaction cost analysis (TCA)?

• Minimize production costs

• Maximize foreign investment

• Balance organizational and market costs

• Increase local production

What are 'ownership advantages' according to Dunning's eclectic approach?

• Natural resources in the home country

• Intangible assets such as knowledge

• Lower production costs

• Access to emerging markets

What is a criticism of the Uppsala model?

• It is only applicable to service industries

• It is too flexible

• It does not take into account prior experience

• It does not consider the interdependence between markets

What does the 'network model' imply in internationalization?

• Flexible relationships between actors in different countries

• Lack of international connections

• Exclusive use of internal resources

• Total dependence on the local market