Quiz 5
The main reason that firms internalize value-chain activities is to ________.
Gain and sustain competitive advantage
Both Sony and Toshiba are Japanese companies that produce computers and video games. Which of the following could be a reason that these firms have increased their competitive advantage?
Intense Rivalry
Networks serve as positive, long-term ________ that businesses form with each other for economic benefit
Relationships
Which of the following is NOT a limitation of the absolute and comparative advantage theories?
Large-scale production provides economies of scale
According to the eclectic paradigm, a factor in deciding whether a firm will internationalize via FDI is the _________.
presence of location-specific advantages
Established in 2010, Instagram quickly found an international market for its photo- site. Currently, only a small fraction of Instagram's customers are from the United States. Instagram is an example of a(n) ________.
Born Global Firm
Which statement best describes network theory?
Buyers and sellers are linked to one another through continuous exchanges.
What is a common feature of national industrial policies?
Offering tax incentives
What is the second stage of the internationalization process model?
Pre-Export
Your company is entering a market that has several small clusters of well-established companies. Which of the following is true of an industrial cluster?
Companies in industrial clusters have advantages in information and knowledge exchange
How can monopolistic advantage theory explain how certain companies can succeed internationally without much competition?
Companies succeed overseas if they have developed resources and capabilities that no other company has.
Vix is a leader in fare-collection equipment for Australia's transportation industry, having already installed a new, pioneering system in subways and buses in major cities worldwide. In this example, Vix has gained a competitive advantage by ________.
Encouraging innovation
Germany's abundance of employees with strong engineering skills has led to the nation becoming a leader in the international engineering and design industries. This is an example of national competitiveness due to ________.
Factor Conditions
What is the most complex entry strategy for engaging in global business?
Foreign Direct Investment
SkiJet USA wants to take its production operations overseas. Which of the following is the LEAST likely reason for SkiJet USA to collaborate with overseas companies?
Foreign partners would give SkiJet USA complete control over production and marketing.
The factor proportions theory rests on the premise that ________
products differ in amount of labor, natural resources, and capital required for production
You work for an electronics firm that wishes to do business in India in the next few years by following the internationalization process model. Why is this model a viable option for getting into a global market?
Starting slow with smaller operations will allow the company to tread cautiously while monitoring progress in the new markets.
The technology for television sets was invented in the United States, and production began in the 1940s. Sales grew until TVs became standardized. Then production shifted overseas, and now the United States imports its television sets. This is an example of ________.
The international product life cycle
The most likely reason that companies engage in international business is to have ________
a competitive advantage in terms of lowering costs
Which of the following defines the comparative advantage principle?
. It may be beneficial for two countries to trade with each other as long as one is relatively more efficient at producing a product needed by the other.
What is the eclectic paradigm?
A framework that explains the extent of value chain operations that firms should own overseas
The New Zealand government enacted pro-trade policies in conjunction with the private sector. The government transformed New Zealand into an industrialized, competitive, and free-market economy. This is an example of ________.
A national industrial policy
An advantage of internalization is the ability to ________.
Control how a company products are produced
Which of the following best explains the slow nature of internationalization?
Managers have little or no information about foreign markets
______ favors trade achieved by maximizing exports and minimizing or even impeding imports.
Mercantilism