Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Which
of the following is NOT an environmental factor?
a. | Demographic.
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Economic. | b. | Financial. | | | | |
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2.
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When
is a market penetration strategy most effective?
a. | When the firm is
introducing a new product to a current market. | c. | When the firm is selling current products in new
markets. | b. | When the firm is selling current products in current markets.
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3.
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What
are switching costs?
a. | The costs incurred by a manufacturer in producing a new
product. | c. | The costs
incurred by a customer in changing suppliers. | b. | The costs
incurred by a distributor in redirecting products. | | | | |
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4.
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Which
of the following is a reactive reason to globalize?
a. | Profit
advantage. | c. | Competitive
pressures. | b. | Technological advantage. | | | | |
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5.
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Which
of the following is a proactive reason to globalize?
a. | Overproduction. | c. | Excess
capacity. | b. | Managerial commitment. | | | | |
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6.
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What
is lower landed cost?
a. | The total cost of the product when it finally lands in the
target country. | c. | The price which
applies before the product is exported. | b. | The lower cost of a product compared with a competing, foreign
product. | | | | |
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7.
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Which
of the following is a country consideration?
a. | Market size and growth. | c. | Economic situation. | b. | Competition. | | | | |
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8.
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What
is the Uppsala model state?
a. | That firms typically go through a series of stages when they
enter foreign markets. | c. | That firms keep
transactions to themselves if they are part of their core strengths, and subcontract everything
else. | b. | That firms typically play to their strengths and use whichever
strategy is best for them when entering foreign markets.
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9.
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What
is an arrangement called whereby two companies with a common strategic goal make a formal or informal
agreement?
a. | A licensing
agreement. | c. | A strategic
alliance. | b. | A franchise agreement. | | | | |
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10.
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What
is a blocked market?
a. | A market that has been divided up among a group of
firms. | c. | A market that
has a lot of competition already present. | b. | A market that has high trade barriers.
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