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Global Strategy Study Set 1

Business

Quiz 6 :

Entering Foreign Markets

Quiz 6 :

Entering Foreign Markets

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Under the Stage Model school of thought firms will enter culturally similar countries during their first stage of internationalization.
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True False
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Answer:

True

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In regards to industry-based considerations,the higher the entry barriers,the more intensely firms will attempt to compete abroad.
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True False
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Answer:

True

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​Customer discrimination against foreign firms has been eliminated in recent years.
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True False
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Answer:

False

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Small firms often go abroad to follow their large counterparts as suppliers. ​
True False
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​In an obsolescing bargain,an MNE receives greater incentives from a foreign government after entering that market.
True False
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The small size of a firm is a main reason firms go abroad.
True False
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The large size of the domestic market is the main reason firms go abroad.
True False
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Currency risks can be reduced by currency hedging or strategic and hedging.
True False
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​Small firms in a large domestic market are less likely to internationalize because of their relatively poor resource base and large size of their domestic market.
True False
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​Industries in which suppliers and buyers locate in a specific region are more likely to benefit from location-specific advantages.
True False
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The bargaining power of buyers may lead to forward vertical integration.
True False
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​The more a company leverages its patented,branded,and trademarked products abroad,the less likely it is that counterfeits of these products will pop up.
True False
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​Firms with a market-seeking strategy will locate primarily where the advantages include an abundance of innovative individuals,firms,and universities.
True False
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The liability of foreignness is the inherent disadvantage foreign firms experience in host countries because of their nonnative status.
True False
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​One of the best ways for a foreign market entrant to overcome the liability of foreignness is through its superb value of firm-specific assets.
True False
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The bargaining power of suppliers may prompt backward vertical integration.
True False
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​A host country's local content requirements are primarily an attempt to avoid the presence of screwdriver plants.
True False
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​Firms that face high dissemination risks are more likely to choose against entering a foreign market.
True False
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The market potential of substitute products may encourage firms to bring them abroad.
True False
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Backward vertical integration refers to vertical integration that has not been updated.
True False
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