Multiple Choice Questions ( Only one correct answer for each question) ( 2'10 = 20 marks )

1. Porter contends that government ( ).

A. can influence the domestic demand conditions and the domestic rivalry components of the diamond, but not the other two components.

B. can influence each of the four components of the diamond either positively or negatively.

C. can influence the factor endowments and the related and supporting industries components of the diamond, but not the other two components.

D. has little or no effect on the four components that shape the environment in which firms compete.

2. The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as _____.

A. market segmentation

B. market penetration

C. diversification strategy

D. differentiation

3.____ and its extensions can help to explain imitative FDI behavior by firms in oligopolistic industries.

A. Internalization theory

B. The eclectic paradigm

C. The noninterventionist theory

D. Knickerbocker's theory

4. Country risk assessment is a way to ( ).

A. estimate the risk to business employees, property, and investment.

B. predict risk of marketing errors, given cultural variables.

C. predict responses of citizens to new product lines.

D. analyze the impact of diversity in a country's workforce.

5. Which of the following activities can be regarded as the outward-looking internationalization?

A. Importing/sourcing.

B. Establishing joint ventures outside the home country with foreign companies.

C. Acting as licensee from a foreign company.

D. Managing as the wholly owned subsidiary of a foreign firm.

6. Alliances that are carried out through contract rather than ownership sharing are called ________.

A. cultural strategic alliances

B. equity strategic alliances

C. non-equity strategic alliances

D. transnational strategic alliances

7. An appropriate compensation and benefits package is most likely to ________.

A. increase the rate of attrition significantly

B. motivate employees

C. lower the overall organizational efficiency in the short-term

D. lower the importance of training

8.With the geographic structure, the focus is on ________, since products can be adapted to local requirements.

A. marketing

B. innovation

C. divesting

D. importing

Which of the following is generally viewed as the most risky entry strategy? ( )

A. turnkey operations

B. new, fully-owned subsidiaries

C. international joint ventures

D. service sector outsourcing

10. Which of the following is the most beneficial aspect of an international joint venture? ( )

A. the international partner receives the entire profit.

B. the responsibility of risks is solely taken by the international partner.

C. the partner's local contacts and markets will be utilized.

D. the entire cost of production will be borne by the local partner.