International Business Quiz

When a firm invests capital in a foreign market in order to gain ownership of a facility it is known by which of the following terms?

• outsourcing

• exporting

• global procurement

• FDI

Licensing and franchising are both ________ relationships.

• joint venture

• intermediary

• competitive

• contractual

All of the following increase the risk of internationalization through FDI and collaborative ventures except ________.

• financial resources

• supplier coordination

• employee management

• manufacturing

Which of the following is an example of push factors?

• increasing demand

• government incentives

• falling profit margins

• business plans

Favorable foreign market conditions that encourage firms to internationalize are known by which of the following terms?

• pull factors

• reactive factors

• proactive factors

• push factors

A risk-taking manager at a Canadian firm would most likely pursue initial internationalization in which of the following foreign markets?

• Australia

• Great Britain

• United States

• Russia

Which of the following is a benefit to firms of the lengthy internationalization process?

• Opportunities arise to develop ideas and adapt business methods for the domestic market.

• Financial resources can be allocated to the domestic market during the waiting period.

• Managers become familiar with local regulations and procedures for doing business.

• Additional time is available for employee training and business plan development.

Which of the following most likely occurs in the experimental stage of internationalization?

• Managers open franchises within an economic bloc to gain valuable experience.

• Management targets psychically close markets through collaborative ventures or FDI.

• Managers target low-risk, psychically close markets through exporting or licensing.

• Management aggressively targets the domestic market to take control over competitors.

A firm allocates resources based on available international business opportunities during which of the following internationalization stages?

• Active Involvement

• Experimental Involvement

• Committed Involvement

• Collaborative Involvement

Focal firms that internationalize through exporting will most likely perform which of the following activities in the home market?

• distribution

• marketing

• sales

• manufacturing