61.The decision of what entry mode to use primarily based

Question : 61.The decision of what entry mode to use primarily based : 1413275


61.The decision of what entry mode to use is primarily based on all of the following factors EXCEPT

a.the industry’s competitive conditions.

b.the country’s situation and government policies.

c.the worldwide economic situation.

d.the firm’s unique set of resources, capabilities, and core competencies.

62.According to the Chapter 8 Strategic Focus on Walmart, uses which of the following international entry strategies?

a.joint ventures

b.wholly-owned subsidiaries

c.joint ventures, acquisitions, and new wholly-owned subsidiaries


63.What drives the decision by Walmart in its choice of international entry modes? (Chapter 8 Strategic Focus)

a.Walmart’s resources

b.the entry modes used by Walmart’s competitors

c.conditions in the specific international market such as government policies and regulations

d.Walmart’s multidomestic international corporate-level strategy

64.When a firm INITIALLY becomes internationally diversified, its returns

a.remain stable.


c.become more variable.


65.An international diversification strategy is one in which a firm

a.expands into nearby markets

b.expands into a potentially large number of geographic locations and markets

c.expands into one or a few markets

d.acquires a firm in a foreign country

66.A nation’s competitiveness depends on the capacity of its industries to ____ and thereby maintain its competitive advantage.

a.diversify internationally

b.have access to critical resources

c.protect its proprietary capabilities


67.Internationally diversified firms

a.earn greater returns on their innovations through larger or more numerous markets.

b.are more likely to produce below-average returns for investors in the long run.

c.may need to decrease international activities when domestic profits are poor.

d.are generally unable to achieve high levels of synergy because of differences in cultures.

68.Bunyan Heavy Equipment, a U.S. firm, is investigating expanding into Russia using a greenfield venture. The committee researching this project has delivered a negative report. The MAIN concern of the committee is probably

a.loss of intellectual property due to Russian piracy.

b.the fluctuation in the value of the ruble.

c.the numerous and conflicting legal authorities in Russia.

d.Russia’s recent actions to gain state control of private firms’ assets.

69.Terrorism creates an economic risk for firms which

a.reduces the amount of investment foreign companies will make in a country perceived to be terror-prone.

b.is created by governmental bans on doing business with terrorist regimes.

c.is offset by the above-average returns for firms which have learned how to operate in such an environment.

d.is absorbed by firms which are highly geographically diversified and which operate in both secure and insecure locations.

70.Arkadelphia Polymers, Inc., earns 60% of its revenue from exports to Europe and Asia. The CEO of the company would be

a.concerned if the value of the dollar strengthened.

b.pleased if the value of the dollar strengthened.

c.unconcerned about the fluctuation in the value of the dollar because the company is widely diversified geographically.

d.likely to consider moving to international strategic alliances or acquisitions if the value of the dollar fell and remained low.

71.The positive results associated with increasing international diversification have been shown to

a.continue as the level of international diversification increases.

b.level off and become negative as diversification increases past some point.

c.become negative quickly.

d.be centered in only one or two industries.

72.All of the following complicate the implementation of an international diversification strategy EXCEPT

a.widespread multilingualism.

b.increased costs of coordination between business units.

c.cultural diversity.

d.logistical costs.

73.Haier is developing a global brand through extensive international diversification using the _____ corporate-level diversification strategy (Chapter 8 Strategic Focus).







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