Alleva IB Exam #2 Homeworks
What are the barriers to exporting for small and medium-sized firms?
-lack of knowledge of the size and location of export opportunities -lack of knowledge of the complexities and mechanics of exporting to countries with different languages and business practices -lack of understanding of competitive conditions in the foreign market
What category does this business issue and response align with: Firms may need help in financing exports, and importers might need financing to buy imports. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Export assistance
What category does this business issue and response align with: The Ex-Im Bank is the U.S. government agency that helps facilitate exports, imports, and the exchange of commodities by making financing available. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Export assistance
What category does this business issue and response align with: By relying on a third party trusted by both buyers, and sellers, an international transaction may be made. Banks often represent those trusted third parties. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Financing international trade
What category does this business issue and response align with: If the buyer is unknown and from a different country, the firm may not trust the buyer to pay for the merchandise. The buyer may not trust the seller. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Financing international trade
What category does this business issue and response align with: A major impediment faced by firms beginning to export is lack of knowledge about markets, countries, regulations, and opportunities. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Information needs
What category does this business issue and response align with: The U.S. government provides a wealth of information and organizes trade events and market studies for exporters. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Information needs
A firm facing low pressures for local responsiveness and few pressures to contain costs might best pursue a(n) _______________________.
International Strategy
What category does this business issue and response align with: Firms might accept goods or services in payment for exported goods or services. A variety of countertrade options have evolved. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Limited payment options
What category does this business issue and response align with: Some markets might be attractive, but the currency of the country might not be convertible. The exporter may either give up on that market or find alternatives. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Limited payment options
What category does this business issue and response align with: Export management companies can provide start-up assistance or act as the international trading department for firms. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Limited staff expertise
What category does this business issue and response align with: Many firms starting to export have limited expertise among current staff and few resources to dedicate to exporting and international trade. -Limited payment options -Information needs -Limited staff expertise -Financing international trade -Export assistance
Limited staff expertise
__________________________is the most appropriate strategy when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.
Localization Strategy
___________________________ is the most appropriate strategy when the firm simultaneously faces strong pressures for both cost reductions and local responsiveness.
Transnational Strategy
A relatively low level of fixed costs can make it economical to perform a particular activity in several locations at once. (T/F)
True
Formulating strategy, deciding how to allocate resources within a firm, and evaluating the performance of managers and giving feedback are examples of control systems. (T/F)
True
To survive, a firm must strive to achieve a fit between its environment, its strategy, and its organizational architecture. (T/F)
True
Which of the following is not a huge barrier to exporting for small and medium-sized firms?
a lack of success at achieving domestic scale economies
With regard to exporting, studies have shown that unlike big firms, small and medium-sized firms tend to
be reactive and wait for opportunities to come to them.
A function of a capital market is to
bring together those who want to invest money with those who want to borrow money.
Budgets and capital spending rules are the most important __________ controls in subunits within multinational firms.
bureaucratic
The employees at First Rate Fitness are a close group. They work and play together, and they believe that the company's goals are their goals. This demonstrates the organization's
culture.
The Bretton Woods agreement implemented a system of ________ exchange rates.
fixed
What allows a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output?
flexible manufacturing
When using horizontal differentiation, a firm divides itself into subunits based on function, type of business, or
geographic area.
A(n) __________ is a facility that positions and allows customization of products for delivery to worldwide wholesalers or retailers or directly to consumers anywhere in the world.
global distribution center
Felipe has found that if he invests in the global capital market, he has a wider range of investment opportunities than a purely domestic capital market. If Felipe decides to invest in this market, he should be aware that
he can reduce their risk to below what could be achieved in a strictly domestic market.
One way for first-time exporters to identify the opportunities in exporting and to avoid many of the associated pitfalls is to
hire an export management company.
Stan's company is interested in a hedge fund that positions itself to make "long bets." That means it will invest in funds that are anticipated to
increase in value.
A global capital market benefits borrowers by lowering the cost of capital and
increasing the supply of funds available for borrowing.
Two factors that helped global capital markets take off in the last decades of the 20th century were __________ and __________.
information technology; deregulation by governments
In practice, the global matrix structure often
is clumsy and bureaucratic.
Pressures for local responsiveness may make it difficult to ______________________________.
leverage skills and products associated with a firm's core competencies from one country to another
The International Monetary Fund was established at the Bretton Woods conference to
maintain order in the international monetary system.
Tina's Formal Attire is trying to decide if it should purchase new machinery that would allow it to add zippers to some of its products or if it should outsource adding zippers to another firm. Tina's is in the midst of a(n) __________ decision.
make-or-buy
The ________ program organized by the Department of Commerce provides representatives who accompany groups of U.S. businesses abroad to meet with qualified agents, distributors, and customers.
matchmaker
The refers to the level of output at which most plant-level scale economies are exhausted.
minimum efficient scale
The idea that each country should be allowed to choose its own inflation rate is called the ________ argument.
monetary autonomy
Markets are dynamic, and any firm will face competition. In time, international and localization strategies tend to become less viable, and managers need to ________________________________.
orient their companies toward either a global standardization or transnational strategy.
The United Arab Emirates (UAE) bases the valuation of its currency on the U.S. dollar. The value of the UAE's currency is changed based on the changes in the value of the dollar. This is an example of a ________ exchange rate system.
pegged
For U.S. firms, the most comprehensive source of information on export opportunities is
the U.S. Department of Commerce.
If a country increases its money supply rapidly under a fixed exchange rate regime, then
the country will face high levels of price inflation.