Question 1

The GDP of France is 2.113 trillion USD whereas Sierra Leone's GDP is approximately 4.812 billion USD. According to the CAGE framework, this is a case of:

Accepted Answer

A)   emotional distance.
B)   economic distance.
C)   cultural distance.
D)   geographic distance.
E)   administrative distance.F) C) and E)
G) B) and C)

Question 2

When entering a new market, the two typical dimensions of corporate fit are _____ and the firm's risk tolerance.

Accepted Answer

human reso...

Question 3

A(n)  _____ is a transaction in which a firm gains control of another firm by purchasing its stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a purchase price.

Accepted Answer

A)   standstill agreement
B)   demerger
C)   strategic alliance
D)   merger
E)   acquisitionF) A) and E)
G) A) and D)

Question 4

What are the six basic steps of scenario planning?

Accepted Answer

Step 1- Choose the target issue, scope a...

Question 5

Firms are more likely to be successful when they exploit a change in the environment rather than simply survive or oppose the change.

Accepted Answer

A) True 
 B)False

Question 6

What are the three steps in the PESTEL analysis?

Accepted Answer

There are three steps in the PESTEL anal...

Question 7

According to the CAGE framework, the absence of shared monetary or political association is representative of the _____distance between countries.

Accepted Answer

The answer of According to the CAGE framework, the absence...

Question 8

Home-market norms tend to remain the same over time irrespective of the shifting demographics due to immigration or aging populations.

Accepted Answer

A) True 
 B)False

Question 9

Certification agencies, consumer reports, and regulatory authorities are examples of specialized intermediaries for:

Accepted Answer

A)   financial markets.
B)   markets for managerial talent.
C)   markets for products.
D)   auction markets.
E)   labor markets.F) B) and D)
G) All of the above

Question 10

Emerging markets lack many of the specialized intermediaries that make financial markets work. The lack of such intermediaries is referred to as:

Accepted Answer

A)   intermediary void.
B)   institutional void.
C)   infrastructural void.
D)   market void.
E)   organizational void.F) C) and D)
G) A) and E)

Question 11

Which of the following is an advantage of an acquisition?

Accepted Answer

A)   Established manufacturing operations in the foreign country
B)   Low cost
C)   Absence of integration issues with home office
D)   Eligibility for any financial help from the target company
E)   Right to ignore the current liabilities associated with the business being acquiredF) B) and C)
G) B) and E)

Question 12

The purpose of _____ is to provide a bigger picture, one in which organizations can see specific trends and uncertainties.

Accepted Answer

The answer of The purpose of _____ is to provide...

Question 13

The more similar markets in different regions are, the lesser the pressure for an industry to globalize.

Accepted Answer

A) True 
 B)False

Question 14

Managers also need to take into consideration the macroeconomic factors that will have near-term and long-term effects on the success of their strategy.

Accepted Answer

A) True 
 B)False

Question 15

What are the marketing factors that favor industry globalization?

Accepted Answer

The marketing factors that fav...

Question 16

Institutional differences refer to differences in the:

Accepted Answer

A)   political systems of two countries.
B)   languages of two countries.
C)   climates of two countries.
D)   natural resources of two countries.
E)   social norms of two countries.F) A) and D)
G) All of the above

Question 17

Which of the following is true of acquisitions?

Accepted Answer

A)   The acquiring company will be eligible for any financial help from the company whose shares it is trying to acquire.
B)   It affords the firm maximum control and has the most potential to provide above-average returns.
C)   The acquiring company enters into an agreement with the target business to pursue a set of agreed-upon goals while remaining independent organizations.
D)   The acquiring firm avoids the expense of establishing operations in the new country.
E)   The acquiring company gains control of another firm by purchasing its stock.F) A) and E)
G) B) and E)

Question 18

Companies employ _____ to understand the latent, unarticulated needs of local consumers.

Accepted Answer

A)   quantitative methodologists
B)   ethnographers
C)   physiologists
D)   psychiatrists
E)   statisticiansF) B) and C)
G) C) and D)

Question 19

Which of the following question would help an organization determine the favorability of the sociocultural factors for business expansion in a PESTEL analysis?

Accepted Answer

A)   What are the country's social-welfare policies?
B)   What are the dominant local religions, and what influence do they have on consumer attitudes and opinions?
C)   What is the status of employment, health and safety, and product safety laws?
D)   What are the regulations regarding waste disposal and energy consumption?
E)   What is the level to which the local government and industry fund research, and are those levels changing?F) A) and C)
G) C) and D)

Question 20

Product differentiation plays a critical role for companies entering a new market.

Accepted Answer

A) True 
 B)False

Exam 8: International Expansion and Global Market Opportunity Assessment

Firms are more likely to be successful when they exploit a change in the environment rather than simply survive or oppose the change.

Correct AnswerverifiedShow Answer

Managers also need to take into consideration the macroeconomic factors that will have near-term and long-term effects on the success of their strategy.

Correct AnswerverifiedShow Answer

Which of the following is true of acquisitions?

Correct AnswerverifiedShow Answer

What are the marketing factors that favor industry globalization?

Correct AnswerverifiedThe marketing factors that fav...View AnswerShow Answer

Product differentiation plays a critical role for companies entering a new market.

Correct AnswerverifiedShow Answer

Institutional differences refer to differences in the:

Correct AnswerverifiedShow Answer

A(n) _____ is a transaction in which a firm gains control of another firm by purchasing its stock, exchanging the stock for its own, or, in the case of a private firm, paying the owners a purchase price.

Correct AnswerverifiedShow Answer

The purpose of _____ is to provide a bigger picture, one in which organizations can see specific trends and uncertainties.

Correct AnswerverifiedShow Answer

The GDP of France is 2.113 trillion USD whereas Sierra Leone's GDP is approximately 4.812 billion USD. According to the CAGE framework, this is a case of:

Correct AnswerverifiedShow Answer

Emerging markets lack many of the specialized intermediaries that make financial markets work. The lack of such intermediaries is referred to as:

Correct AnswerverifiedShow Answer

What are the three steps in the PESTEL analysis?

Correct AnswerverifiedThere are three steps in the PESTEL anal...View AnswerShow Answer

When entering a new market, the two typical dimensions of corporate fit are _____ and the firm's risk tolerance.

Correct Answerverifiedhuman reso...View AnswerShow Answer

Certification agencies, consumer reports, and regulatory authorities are examples of specialized intermediaries for:

Correct AnswerverifiedShow Answer

Companies employ _____ to understand the latent, unarticulated needs of local consumers.

Correct AnswerverifiedShow Answer

Which of the following question would help an organization determine the favorability of the sociocultural factors for business expansion in a PESTEL analysis?

Correct AnswerverifiedShow Answer

What are the six basic steps of scenario planning?

Correct AnswerverifiedStep 1- Choose the target issue, scope a...View AnswerShow Answer

Home-market norms tend to remain the same over time irrespective of the shifting demographics due to immigration or aging populations.

Correct AnswerverifiedShow Answer

According to the CAGE framework, the absence of shared monetary or political association is representative of the _____distance between countries.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of an acquisition?

Correct AnswerverifiedShow Answer

The more similar markets in different regions are, the lesser the pressure for an industry to globalize.

Correct AnswerverifiedShow Answer

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The marketing factors that fav...
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There are three steps in the PESTEL anal...
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human reso...
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Step 1- Choose the target issue, scope a...
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Correct Answer
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