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WorksheetsIAE INT STR S2 The Location Choice Process
Total questions: 20
Worksheet time: 10mins
What is one of the key impacts of globalization on business expansion?
Reduction in technological advancements
Drive for companies to explore international markets
Focus on domestic market consolidation
Which of the following is NOT a driver of globalization?
Global integration
Economic isolation
Technological advancements
What is a major benefit companies experience in the global marketplace?
Increased tariffs
Access to new markets
Limited technological growth
What is a common challenge companies face in the global marketplace?
Consistent economic stability
Regulatory environments and compliance issues
Abundant and inexpensive resources
Which of the following is a key driver of location choice for companies?
Availability of luxury facilities
Political stability
Domestic regulations
What factor would most likely influence a company’s decision to choose a location with low labor costs?
Market potential
Access to technological resources
Cost efficiency and operational savings
What does the 'C' in the CAGE framework stand for?
Cultural
Corporate
Competitive
The CAGE framework helps companies assess external environments by analyzing:
Internal company culture
Market potential only
Cultural, Administrative, Geographic, and Economic distances
What is one advantage of using the CAGE framework in market analysis?
It focuses solely on economic conditions
It provides a comprehensive view of external factors
It disregards cultural alignment
Which factor is analyzed in the CAGE framework's 'Geographic' component?
Proximity between markets
Language differences
Trade regulations
Why is political stability important when selecting a new market location?
It guarantees low costs
It ensures a predictable business environment
It automatically increases market size
What does risk assessment in international expansion focus on?
Evaluating domestic competition
Political, economic, legal, and social factors
Analyzing global market similarities
Which of the following is a key factor companies assess during risk analysis?
Cultural trends
Political risks
Internal company resources
What is a common regulatory challenge faced during international expansion?
Lack of global trade agreements
Intellectual property laws
Uniform labor regulations
Why are tariffs a concern for companies expanding internationally?
They encourage free trade
They increase the cost of importing and exporting goods
They reduce legal compliance requirements
How do companies manage compliance with international trade agreements?
By ignoring local regulations
By aligning their operations with local laws and regulations
By focusing solely on their domestic practices
Which of the following is an example of mitigating political risk in new markets?
Establishing partnerships with local firms
Ignoring government policies
Maintaining a global standardized product line
When assessing new markets, why is it important for companies to evaluate economic conditions?
To determine cultural fit
To understand market stability and growth potential
To measure political alignment
What is a key takeaway from case studies on successful international expansions?
Ignoring local regulations is often beneficial
Thorough market analysis and risk management are essential
Economic conditions are the only important factor
How do cultural differences affect international market entry strategies?
They have no impact on business operations
They require companies to adapt their strategies to fit local customs and expectations
They make it easier for companies to maintain a standardized approach
