International business

What is an international strategy?

• Focusing entirely on the domestic market

• Exporting and selling just like in the home market

• Dispersing value creation activities globally to achieve efficiency and local responsiveness

• Focusing on developing premium products at home

Which organizational structure is appropriate for a localization strategy?

• Global functional structure

• Geographic area structure

• Global product division structure

• Global matrix structure

What is the main goal of a trans national strategy?

• Focusing product research in a single country

• Reducing costs through mass production

• Balancing cost reduction, value creation, and local responsiveness

• Expanding financial activities in developed countries

When and by whom was Tesco founded?

• 1929 – Jack Walker

• 1919 – Jack Cohen

• 1995 – David Cohen

• 1930 – Sam Walton

What are the two major trends in the global macro environment in recent years?

• Increased trade barriers and price controls

• Higher taxes and stricter intellectual property regulations

• Lower trade barriers and permission for 100% foreign ownership

• Slower growth and bans on foreign direct investment

Which of the following is NOT mentioned as a factor influencing the long-run economic benefits of entering a national market?

• Market population size

• International political conditions

• Economic growth rate

• Current consumer purchasing power

Which of the following is NOT one of the three basic decisions a firm must make when expanding internationally?

• Which markets to enter

• When to exit the market

• When to enter those markets

• On what scale to enter those markets

What is a key advantage of being a first mover in a new foreign market?

• Lower initial investment costs

• The ability to capture demand ahead of competitors

• Guaranteed long-term success

• Avoiding the need to learn about the market

Which entry mode involves granting another firm the right to produce and sell your product in exchange for a fee?

• Franchising

• Licensing

• Joint Venture

• Exporting

Which entry mode gives a firm full control over its foreign operations and is often preferred when protecting proprietary technology?

• Licensing

• Turnkey Project

• Wholly Owned Subsidiary

• Franchising