1. Localization strategy should be applied by multinational companies for their products when there are significant differences across nations with regards to consumer tastes and preferences and where cost pressures are not intense. True False

2. According to Dunnings theory of eclectic paradigm, similar patterns of growth of foreign direct investment in a certain sector of a certain country/region occurs due to: * 1 point

Location-specific advantages

3. When a company overestimates the potential and financial value of a company which they want to acquire, it is known as: localization strategic alliance hubris hypothesis franchising

4. Which of the following is NOT an example of a value chain's primary activity?

Production Marketing and sales Customer service activity Logistics

5. When a company works as a foreign contractor to finish a project and then might run it for a specific period of time while training the local employees and ultimately leaves the project after completion of all these are known as:

Licensing Contract franchise Greenfield investment Turnkey project

6. When a firm tries to simultaneously achieve low costs and differentiate its product offering across geographic markets, the firm is using which kind of strategy?

International Strategy Global standardization Strategy Localization Strategy Transnational Strategy

7. When a company uses licensing to enter new foreign markets, it takes all the risks associated with the foreign expansion.

True False

8. When Toyota, Nissan responded to the investment by Honda in the USA by establishing their own factories in the USA, this falls under which theory?

Market imperfection Multipoint competition The radical view Comparative advantage

9.___________arise from national differences in consumer tastes and preferences, infrastructure, traditional business practices, distribution channels, and host-government demands

Trade wars Culture Pressures for local responsiveness Value creation

10. Human resource management is a primary activity in the value chain.

True False

11. ________ arises when two or more enterprises encounter each other in different national or regional markets.

Multi domestic competition Multipoint competition Eclectic paradigm competition Location-specific competition

12. Trade barriers and high transportation costs are the main disadvantages of this mode of entry:

Exporting Licensing Franchising Joint Venture

13. The growth of FDI is the result of:

Fear of protectionism in other entry modes Democratic political institutions and free-market economies Globalization forces firms to maintain a presence around the world All of the above

14 What type of investment is purchasing fixed assets such as land, factories, and machinery by foreign multinationals?

Human Development Index Gross Fixed Capital Formation Gross Domestic Product Capital Asset Pricing Model

15. _______ refers to skills within a specific company that other competitors cannot easily match or imitate. experience curve core competence knowledge development learning effects