BUSN 3001 EXAM 2025 QUESTIONS AND
ANSWERS
Nelson Concrete recently opened a production plant in the Middle East after learning there
were no Competitive firms in that area - ANS Demonstration of first-over advantage
What are the three basic decisions a firm make - ANS market to enter, timing of entrance
and the scale
The cost of risk associated with doing business in London would be considered ___________
because the country is economically adavanced and politically stable - ANS Low
Conrad's U.S. based company entered the European market long after its competitors had
established themselves. What kind of entry is this? - ANS Late Entry
Kettle-Bright Corp. was the first company to introduce electric teapots in South America. The
company had to establish production standards and educate customers about the benefits of
the product which cost hundreds of thousands of dollars to do. These expenses are examples of
___________________________. - ANS First- Mover Disadvantages
Jameson Machinery Inc. wants to release their newest equipment in the South American
market before other companies in order to establish the Jameson brand. In other words, the
company wants to benefit from _____________________. - ANS First-mover advantages
What three basic decisions must firms evaluate when considering foreign expansion? -
ANS When to enter markets, on what scale to enter markets, and which markets to enter.
1 @COPYRIGHT THEBRIGHT 2025/2026
, Companies that want to have the least amount of risk when pursuing business in a foreign
country should consider countries that are_______________. - ANS Politically Stable
What is the term used for when one company enters markets before its competitors? -
ANS Early Entry
Pioneering cost are associated with _____________ - ANS First-mover disadvantages
Late entrants to a market can benefit from the pioneering costs associated with early entry.
What are two of those benefits? - ANS Learning from the mistakes made by early entrants
and Building on existing consumer education about the product
A firm enters a market on a _____________ scale when it commits significant resources to this
effort - ANS Large
Entering a foreign market on a significant scale is an example of? - ANS Major Strategic
Commitment by a company
When entering a global market using a__________________scale entry strategy, a firm may be
able to capture first-mover advantages associated with scale economies. - ANS Large
A company that enters a foreign market on a large scale must consider the lack of
_____________ associated with significant commitments. - ANS Flexibility
Costs that companies entering a market early have to pay, but which firms late to the market
do not have to bear, are called? - ANS Pioneering cost
What are two reasons a firm would choose NOT to enter a new market on a large scale? -
ANS May not have the resources available to commit to a large-scale
2 @COPYRIGHT THEBRIGHT 2025/2026
ANSWERS
Nelson Concrete recently opened a production plant in the Middle East after learning there
were no Competitive firms in that area - ANS Demonstration of first-over advantage
What are the three basic decisions a firm make - ANS market to enter, timing of entrance
and the scale
The cost of risk associated with doing business in London would be considered ___________
because the country is economically adavanced and politically stable - ANS Low
Conrad's U.S. based company entered the European market long after its competitors had
established themselves. What kind of entry is this? - ANS Late Entry
Kettle-Bright Corp. was the first company to introduce electric teapots in South America. The
company had to establish production standards and educate customers about the benefits of
the product which cost hundreds of thousands of dollars to do. These expenses are examples of
___________________________. - ANS First- Mover Disadvantages
Jameson Machinery Inc. wants to release their newest equipment in the South American
market before other companies in order to establish the Jameson brand. In other words, the
company wants to benefit from _____________________. - ANS First-mover advantages
What three basic decisions must firms evaluate when considering foreign expansion? -
ANS When to enter markets, on what scale to enter markets, and which markets to enter.
1 @COPYRIGHT THEBRIGHT 2025/2026
, Companies that want to have the least amount of risk when pursuing business in a foreign
country should consider countries that are_______________. - ANS Politically Stable
What is the term used for when one company enters markets before its competitors? -
ANS Early Entry
Pioneering cost are associated with _____________ - ANS First-mover disadvantages
Late entrants to a market can benefit from the pioneering costs associated with early entry.
What are two of those benefits? - ANS Learning from the mistakes made by early entrants
and Building on existing consumer education about the product
A firm enters a market on a _____________ scale when it commits significant resources to this
effort - ANS Large
Entering a foreign market on a significant scale is an example of? - ANS Major Strategic
Commitment by a company
When entering a global market using a__________________scale entry strategy, a firm may be
able to capture first-mover advantages associated with scale economies. - ANS Large
A company that enters a foreign market on a large scale must consider the lack of
_____________ associated with significant commitments. - ANS Flexibility
Costs that companies entering a market early have to pay, but which firms late to the market
do not have to bear, are called? - ANS Pioneering cost
What are two reasons a firm would choose NOT to enter a new market on a large scale? -
ANS May not have the resources available to commit to a large-scale
2 @COPYRIGHT THEBRIGHT 2025/2026
