BUS341<3

Which of the following is a support activity of the firm?

Creation and maintenance of information systems

Counsel of the European union is the ____ body of the European union

Executive

Big mac index

False

Differentiation strategy

False

International business is no different than domestic business

As their organizations increasingly engage in cross-border trade and investment, managers need to recognize that the task of managing an international business differs from that of managing a purely domestic business in many ways. At the most fundamental level, the differences arise from the simple fact that countries are different. Countries differ in their cultures, political systems, economic systems, legal systems, and levels of economic development.

Which of the following statements best differentiates between franchising and licensing?

Franchising requires ongoing assistance from the franchiser while licensing normally involves a one-time transfer of property.

The regional trading block zookoland will be joining is

Free trade area green

Traders paradise is a global merchant that sells a variety of products

Hedging

Which of the following refers to currency speculation?

The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates

Which of the following strategies is a firm most likely to pursue when it simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Transnational strategy

Competitive advantage

True

Currency spot rate

True

Which of the following terms best represents the requirements that are the same all over the world, such as steel, bulk chemicals, and industrial electronics?

Universal needs

First mover advantage

Switching costs

Local content requirement

A local content requirement is a requirement that some specific fraction of a good be produced domestically. Local content regulations have been widely used by developing countries to shift their manufacturing base from the simple assembly of products whose parts are manufactured elsewhere into the local manufacture of component parts. They have also been used in developed countries to try to protect local jobs and industry from foreign competition.

The Andean Community now operates as a (n):

Customs union.

How should a firm choose between a greenfield venture or an acquisition

If the firm is seeking to enter a market where there are already well-established incumbent enterprises, and where global competitors are also interested in establishing a presence, it may pay the firm to enter via an acquisition. If the firm is considering entering a country where there are no incumbent competitors to be acquired, then a Greenfield venture may be the only mode.

Which of the following is true of acquisitions?

In many cases, firms make acquisitions to preempt their competitors

Fisher effect

Inflation

Axiom International, an Australian company, wants to expand its operations to China, a country that is politically, culturally, and economically different. The firm needs to select a mode of entry that would give it access to local knowledge, allow sharing of development costs and risks, and also be politically acceptable. Which of the following modes of entry into foreign markets is most suitable for Axiom International?

Joint venture

If a firm's core competency is based on control over proprietary technological know-how, it should avoid ____ and ____ arrangements if possible to minimize the risk of losing control over that technology.

Licensing, joint ventures

Strategy is called

Localization strategy

If a value creation activity of a firm can take place in Mexico most effectively, then that activity of the firm must be based in Mexico. Firms that pursue such a strategy are most likely to realize:

Location economies

What are the Benefits NAFTA

NAFTA aimed to lower the price for goods and services. Such a policy is good for consumers, because it lowers prices. Canada, Mexico, and the United States have implemented NAFTA. Ultimately, this aims to remove all barriers to the free flow of goods and services among the three countries.

Why should a high tech form avoid from entering a high tech economy?

Risk of losing control over technology

The purchasing power parity (PPP) theory tells us that a country with a high inflation rate will:

See depreciation in its currency exchange rate.

Small scale entry

Small scale entry is a way to discover foreign markets