INB 300 Exam 3 Questions With Correct
Answers
_____ is the location-specific advantage that arises from the clustering of economic activities in
certain locations. - CORRECT ANSWER✔✔-Agglomeration
In the context of modes of entry, _____ refers to efforts among a number of firms to jointly
market their products and services. - CORRECT ANSWER✔✔-co-marketing
Which of the following is a formal barrier to trade when foreign firms enter new markets? -
CORRECT ANSWER✔✔-Currency risk
A liability of foreignness refers to the inherent disadvantage that foreign firms experience in
host countries because of their nonnative status. - CORRECT ANSWER✔✔-True
Which of the following modes of entry call for the establishment of independent organizations
overseas? - CORRECT ANSWER✔✔-An equity mode
Which of the following statements is true of greenfield operations? - CORRECT ANSWER✔✔-
They suffer from a slow entry speed of at least one to several years.
If a firm decides to engage in crude oil and petroleum business abroad, which of the following
countries will provide location-specific advantage to the firm? - CORRECT ANSWER✔✔-Russia
, To overcome cultural and institutional differences, it is more important to consider strategic
goals such as market and efficiency rather than culture and institutions. - CORRECT
ANSWER✔✔-True
Which of the following statements is true of scale of entry? - CORRECT ANSWER✔✔-Large-scale
entries demonstrate a strategic commitment to certain markets.
A joint venture is defined as a subsidiary located in a foreign country that is entirely owned by
the parent multinational. - CORRECT ANSWER✔✔-False
In the context of entering into foreign business, firms with a strategic goal to seek market
should select economies of scale and abundance of low-cost factors. - CORRECT ANSWER✔✔-
False
_____ is defined as a project in which clients pay contractors to design and construct new
facilities and train personnel. - CORRECT ANSWER✔✔-A turnkey project
_____ is a non-equity mode of entry into a foreign market. - CORRECT ANSWER✔✔-Turnkey
project
_____ is a type of wholly owned subsidiary. - CORRECT ANSWER✔✔-A greenfield project
Which of the following is true of location-specific advantages? - CORRECT ANSWER✔✔-They
decline when companies overcrowd or when taxes are raised.
(Chapter 11) - CORRECT ANSWER✔✔-(Definition)
Informal institutions affect the formation of alliances and acquisitions by: - CORRECT
ANSWER✔✔-centering on collective norms, supported by a normative pillar.
Answers
_____ is the location-specific advantage that arises from the clustering of economic activities in
certain locations. - CORRECT ANSWER✔✔-Agglomeration
In the context of modes of entry, _____ refers to efforts among a number of firms to jointly
market their products and services. - CORRECT ANSWER✔✔-co-marketing
Which of the following is a formal barrier to trade when foreign firms enter new markets? -
CORRECT ANSWER✔✔-Currency risk
A liability of foreignness refers to the inherent disadvantage that foreign firms experience in
host countries because of their nonnative status. - CORRECT ANSWER✔✔-True
Which of the following modes of entry call for the establishment of independent organizations
overseas? - CORRECT ANSWER✔✔-An equity mode
Which of the following statements is true of greenfield operations? - CORRECT ANSWER✔✔-
They suffer from a slow entry speed of at least one to several years.
If a firm decides to engage in crude oil and petroleum business abroad, which of the following
countries will provide location-specific advantage to the firm? - CORRECT ANSWER✔✔-Russia
, To overcome cultural and institutional differences, it is more important to consider strategic
goals such as market and efficiency rather than culture and institutions. - CORRECT
ANSWER✔✔-True
Which of the following statements is true of scale of entry? - CORRECT ANSWER✔✔-Large-scale
entries demonstrate a strategic commitment to certain markets.
A joint venture is defined as a subsidiary located in a foreign country that is entirely owned by
the parent multinational. - CORRECT ANSWER✔✔-False
In the context of entering into foreign business, firms with a strategic goal to seek market
should select economies of scale and abundance of low-cost factors. - CORRECT ANSWER✔✔-
False
_____ is defined as a project in which clients pay contractors to design and construct new
facilities and train personnel. - CORRECT ANSWER✔✔-A turnkey project
_____ is a non-equity mode of entry into a foreign market. - CORRECT ANSWER✔✔-Turnkey
project
_____ is a type of wholly owned subsidiary. - CORRECT ANSWER✔✔-A greenfield project
Which of the following is true of location-specific advantages? - CORRECT ANSWER✔✔-They
decline when companies overcrowd or when taxes are raised.
(Chapter 11) - CORRECT ANSWER✔✔-(Definition)
Informal institutions affect the formation of alliances and acquisitions by: - CORRECT
ANSWER✔✔-centering on collective norms, supported by a normative pillar.
