GLOBAL EXPANSION BUSA 4980 – STRATEGIC MANAGEMENT EXAM QUESTIONS ANSWERED
CORRECTLY LATEST UPDATE 2026
What are the three steps of global expansion? - Answers Should the firm expand globally, which
countries to enter, and how to enter.
What framework helps decide if a firm should expand globally? - Answers Better-Off Test using the
ADDING Framework.
What framework helps choose countries to enter? - Answers CAGE Framework.
What framework helps decide how to enter countries? - Answers Ownership Test.
What is the ownership test in global expansion? - Answers Which ownership mode creates greater
competitive advantage than alternatives.
What is Greenfield entry? - Answers Entering a foreign country through internal development from
scratch.
What is the main drawback of Greenfield entry? - Answers Lack of local knowledge and liability of
foreignness.
What is liability of foreignness? - Answers The disadvantage of operating in an unfamiliar country and
coordinating across distance.
What are alliances in global expansion? - Answers Partnering with local or foreign firms to enter
markets.
What are the main risks of alliances abroad? - Answers Language barriers, disclosure issues, weak
legal enforcement, and IP loss.
What is intellectual property risk abroad? - Answers Potential copying, infringement, or theft of ideas
and technology.
What are acquisitions in global expansion? - Answers Buying an existing foreign company to enter a
market.
What are the main risks of foreign acquisitions? - Answers Legal issues, government interference, and
integration problems.
Why are post-merger integration problems worse internationally? - Answers Cultural differences and
geographic distance.
Which companies were shown as alliance examples? - Answers Microsoft and Nokia.
Which company merger was shown as a failed example? - Answers DaimlerChrysler.
What league was used as the global expansion case study? - Answers NFL.
Why is the NFL successful in the U.S.? - Answers Strong talent sourcing, game production, marketing,
and sales.
What is the NFL's competitive advantage? - Answers High-quality talent, entertainment product, and
strong branding.
Why has the NFL struggled globally? - Answers The sport depends heavily on U.S.-specific culture and
talent systems.
What are three NFL global strategy options? - Answers Abandon expansion, continue with better
execution, or create foreign demand without foreign players.
What is a major lesson of global expansion? - Answers Global expansion is difficult even for successful
firms.
Do most firms succeed overseas? - Answers No, many fail when venturing overseas.
Can parts of a value chain be outsourced globally? - Answers Yes, not all activities must be exported
abroad.
Why must firms understand home-market advantages? - Answers Because those conditions may not
exist in target countries.
What is the summary of global expansion decisions? - Answers Success depends on fit between
competitive advantage and foreign market conditions.
CORRECTLY LATEST UPDATE 2026
What are the three steps of global expansion? - Answers Should the firm expand globally, which
countries to enter, and how to enter.
What framework helps decide if a firm should expand globally? - Answers Better-Off Test using the
ADDING Framework.
What framework helps choose countries to enter? - Answers CAGE Framework.
What framework helps decide how to enter countries? - Answers Ownership Test.
What is the ownership test in global expansion? - Answers Which ownership mode creates greater
competitive advantage than alternatives.
What is Greenfield entry? - Answers Entering a foreign country through internal development from
scratch.
What is the main drawback of Greenfield entry? - Answers Lack of local knowledge and liability of
foreignness.
What is liability of foreignness? - Answers The disadvantage of operating in an unfamiliar country and
coordinating across distance.
What are alliances in global expansion? - Answers Partnering with local or foreign firms to enter
markets.
What are the main risks of alliances abroad? - Answers Language barriers, disclosure issues, weak
legal enforcement, and IP loss.
What is intellectual property risk abroad? - Answers Potential copying, infringement, or theft of ideas
and technology.
What are acquisitions in global expansion? - Answers Buying an existing foreign company to enter a
market.
What are the main risks of foreign acquisitions? - Answers Legal issues, government interference, and
integration problems.
Why are post-merger integration problems worse internationally? - Answers Cultural differences and
geographic distance.
Which companies were shown as alliance examples? - Answers Microsoft and Nokia.
Which company merger was shown as a failed example? - Answers DaimlerChrysler.
What league was used as the global expansion case study? - Answers NFL.
Why is the NFL successful in the U.S.? - Answers Strong talent sourcing, game production, marketing,
and sales.
What is the NFL's competitive advantage? - Answers High-quality talent, entertainment product, and
strong branding.
Why has the NFL struggled globally? - Answers The sport depends heavily on U.S.-specific culture and
talent systems.
What are three NFL global strategy options? - Answers Abandon expansion, continue with better
execution, or create foreign demand without foreign players.
What is a major lesson of global expansion? - Answers Global expansion is difficult even for successful
firms.
Do most firms succeed overseas? - Answers No, many fail when venturing overseas.
Can parts of a value chain be outsourced globally? - Answers Yes, not all activities must be exported
abroad.
Why must firms understand home-market advantages? - Answers Because those conditions may not
exist in target countries.
What is the summary of global expansion decisions? - Answers Success depends on fit between
competitive advantage and foreign market conditions.
