Chapter 13 Practice quiz

in international business, an advantage of being a late entrant in a foreign market is the ability to:

ride on an early entrant's investments in learning and customer education

According to Christopher Bartlett and Sumantra Ghoshal, how can local companies differentiate themselves from foreign multinationals?

by focusing on market niches

in international business, a product that is not widely available in a foreign market and satisfies an unmet need:

is likely to have greater value

Which of the following is a reason why a relatively poor country may be an attractive target for inward investment?

rapid economic growth

First-mover disadvantages refer to:

Disadvantages associated with entering a foreign market before other international businesses.

Which of the following is true of the costs and risks associated with doing business in a foreign country?

They are lower in economically advanced nations

which of the following countries presents a favorable benefit-cost-risk trade-off scenario for foreign expansion?

a country with a free market system

Which of the following is a risk of entering developing nations like India and China on a large scale?

absence of prior foreign entrants

Which of the following is a disadvantage of large-scale entry into a foreign market?

availability of fewer resources to support expansion in other desirable markets

The liability associated with foreign expansion is greater for foreign firms that:

enter a national market early

The probability of survival for an international business increases if it :

enters a national market after several other foreign firms have already done so

an early entrant may find itself at a disadvantage if it:

faces a subsequent change in business regulations in the host-country

Which of the following factors determines the value that an international business can create a foreign market?

nature of indigenous competition

Which of the following is an example of a first mover advantage?

the ability to create switching costs that tie customers into one's products or services

in which of the following situations can an international business command higher prices for a particular product in a foreign market?

when the product offers greater value to customers in the foreign market