brog Inc. is a cosmetics manufacturer based in california, united states. The firm varies its products to suit the different conditions abroad. Brog is operating an example of a
multi domestic industry
Which of the following is the most likely motive behind firms in the mining industry wanting to enter new foreign markets
access to natural resources
A US company buys from a supplier whose currency is increasing against the u.s dollar. Which of the following will the company most likely have to do if the purchasing prices expressed in the suppliers currency?
pay more in dollars that originally expected
a firm that develops the capacity to sell its products by investing in marketing and selling operations is demonstrating ___________.
forward vertical integration
which of the following terms refers to the price of one currency expressed in terms of another?
exchange rate
which of the following is an example of a market-seeking motive for FDI?
a firm follows its key customers abroad
Which of the following should be done by a company planning to internationalize when it assesses market industry potential?
develop a 3-5 year forecast of industry sales for each target market
Exporting is ____________.
the strategy of producing products or services in one country (often the producers home country) and selling and distributing them to customers located in other countries.
The extent of a country's opens to imports is termed
market receptivity
which of the following terms refers to the government reduction of its currency value relative to the other currency values. (hint: china has recently been doing this)
devaluation
the managerial routines, behaviors, and mechanisms that allow a firm to function as intended are known as
organizational processes
the internet facilitates international trade in the service sector by
providing the means to export some types of services to foreign markets
which of the following best explains why some service industry firms most likely enter foreign markets through FDI
the service sector offered by the firm requires direct contact with customers
which of the following is an example of a push factor for a local firm?
increasing competition in the home market
_______ is the procurement of products or services from independent suppliers or company owned subsidiaries located abroad for consumption in the home country or a third country.
importing
which of the following foreign market entry strategies offers the local firm the highest degree of control over foreign operations
wholly owned subsidiary (FDI)
Strategy is __________.
a planned set of actions that managers employ to make the best se of the firms resources and core compentencies to gain competitive advantage
which of the following statements ism most likely to be true regarding a currency's price if the supply of currency increases?
the price of the currency lowers
which of the following statements is true about currencies?
convertible currencies can be readily exchanged for other currencies
which of the following terms is used to refer a focal firms potential ownership of an existing firm?
equity participation
the estimate of the share of annual industry sales the firm expects to generate in a particular target market is known as
company sales potential
which of the following is a characteristic of the fixed exchange rate system?
value of currency is set relative to the value of another
organizational culture is ___________.
the pattern of shared values, behavioral norms, systems,policies, and procedures that employees learn and adopt
two catering companies that join to form a new, larger catering company are an example of a(n) __________.
merger
one of the goals that firms most likely want to attain from internationalizing is _________.
increase their sales and profits
which of the following is a characteristic of a global team?
culturally diverse
which of the following dimensions refers to the buying power of the country's residents?
market intensity
which of the following best describes the role that the international monetary system plays with foreign firms
provides a framework for monetary and foreign exchange activities world wide.
buying products and services from foreign sources and bringing them into the home market is called _______.
global sourcing
counter trade is ________.
an international business transaction where all or partial payments can be made in kind rather than in cash
which of the following statements is true of trade surplus?
it occurs when a nations exports exceeds its imports
a researcher who assigns scores to countries for their overall market attractiveness uses ____ to choose the most promising foreign markets.
indexing and ranking
which of the following does the central bank perform in order to accomodate a nations economic growth?
increase the nations money supply
which of the following would exert pressure on a firm to become locally responsive?
the need to cater to local customer needs
which of the following tasks should a shoe manufacturing company perform first if it needs to assess the global market opportunity?
analyze the firm's readiness to internationalize
a firm that builds new manufacturing facility in a foreign market is participating in a(n)
greenfield investment
which of the following is a primary question ask when attempting to determine a product's potential in a foreign market?
why do people buy the product?
which of the following actions most likely occurs in the experimental involvement stage of internationalization>?
managers target low-risk, culturally close markets through exporting or licensing
in order to estimate industry market potential managers most likely require________.
market size and growth rates specific to that industry
firms that emphasize global integration make and sell________.
products that require minimal adaptation
currency risk can be best defined as the risk that occurs when_________.
one currency changes in relation to another currency
a firm that owns the activities performed in a single stage of its value chain is demonstrating______.
horizontal integration
a firm most likely enters the home market of a foreign competitor in order to ________.
force the competitor to expend resources to defend its market
managing a firms value chain activities on a country-by-country bases to address diverse oppurtunities and risks is known as _________.
local responsiveness
which of the following is a characteristic of a global industry?
a small number of of major players compete head on in multiple projects
licensing and franchising are __________.
contractual relationships
which of the following is managements goal when utilizing gradual elimination?
reduce the number of nations to investigate potential foreign markets.
international portfolio investment is characterized by _______.
passive ownership of foreign stocks and bonds
________ refers to lowering the cost of the firm's operations and activities on a global scale.
efficiency
which of the following is an example of a pull factor for a focal firm?
foreign government incentives