International Business Chapter 1: Video Assignment

When shopping for cars, many U.S. consumers are impulse buyers, whereas consumers in other countries are often more deliberate and prepared. Based on this information, what type of risk does MINI face in different markets? a. Cross-cultural risk b. Currency risk c. Political risk d. Financial risk e. Country risk

a. Cross-cultural risk

When MINI started manufacturing cars in Austria, in addition to its only other facility in Oxford, England, it represented which of the following? a. Foreign direct investment b. Cross-cultural risk c. Global sourcing d. International portfolio investment e. A born global firm

a. Foreign direct investment

MINI cars were originally sold in the United States in the 1960s but were withdrawn due to ________ risk a. currency b. cross-cultural c. country d. commercial e. political

d. commercial

MINI manufactures its cars in only two countries with sales throughout the world. This represents which of the following? a. Global sourcing b. International portfolio investment c. Born global firm d. Commercial risk e. International business

e. International business

Even though the United States is the number one market for MINI, the company is also trying to increase its popularity and sales in other markets such as France, the United Kingdom, and Italy. What is MINI's motive to internationalize? a. Providing service to key customers who have relocated abroad b. Gaining additional flexibility in product sourcing c. Developing economies of scale in production, marketing, and R&D d. Developing new ideas about products, services, and business methods e. Seeking opportunities for growth through market diversification

e. Seeking opportunities for growth through market diversification