Busi 303 Chapter 7 & 8 Questions and
Complete Answers.
Successful global managers have an understanding of how to appraise and adjust to the
requirements of doing business in a culture different from their own. - Answer False
Addresses determinants of an economy's performance that directly impacts a company and
have resonating long term effects. - Answer Economic Factors
The global strategic planning process is complex, but does not entail as many factors, variables,
challenges, and risks as domestic strategic planning. - Answer False
If domestic markets become saturated, the firm may need a larger customer base to maintain? -
Answer Economies of scale
Organizations must ensure that they do not plan hurriedly or rush into foreign markets to jump
on an opportunity for quick cash. - Answer True
What are the two types of business entry modes available into a market? - Answer Low
intensity: No investment into the new market; high intensity: Significant amounts of investment
in the market
The three questions especially important to international expansion are location, timing, and
scope. - Answer False
A primary characteristic of the globalization of markets is the advent of the__________. -
Answer Global Consumer
Addresses issues that may impact global business operations, such as climate, weather,
geographical location, global changes in climate, environmental offsets. - Answer
Environmental concerns
Direct market accession offers a firm low risk, gives them a simple way to initiate the process of
entering a global market, and helps the firm meet demands and challenges. - Answer True
, The key factors that influence the entry mode selection include all except? - Answer
Production and labor costs
Small markets support entry modes that have low break-even sales volumes, like indirect or
agent exporting, licensing, and some contractual arrangements. - Answer True
_____________ is a significant contributor to the positional advantage of the company and is
related to the long-term, overall firm performance - Answer Market Orientation
PESTLE analysis can provide answers to the following specific global market entry questions. -
Answer Political, Economic, Social, Technological, Legal, Environment.
In most cases, exporting and importing requires a minimum initial investment and may allow a
business to develop key relationships with export/import firms (intermediaries) that will aid in
ensuring success into the new market. - Answer True
Which is not a vital consideration for determining managerial commitment to expanding
globally? - Answer Managements timeframe/timeliness for the international operations to pay
off
Joint ventures usually involve an alliance where two or more companies contribute assets,
which results in the formation of a new legal entity. - Answer True
_____________ are utilized to provide expertise to inexperienced exporters as they enter
overseas markets. - Answer Intermediaries
A franchise is an agreement that allows one party to use a property right in exchange for
payment to the other party. - Answer False
These variables include the legal system, political structure, and the business customs unique to
that nation. - Answer Openness to global trade
The investigation of opportunities for domestic expansion requires the careful consideration of
various business-environment conditions including the identification of unique resources and
capabilities that may be offered. - Answer True
Complete Answers.
Successful global managers have an understanding of how to appraise and adjust to the
requirements of doing business in a culture different from their own. - Answer False
Addresses determinants of an economy's performance that directly impacts a company and
have resonating long term effects. - Answer Economic Factors
The global strategic planning process is complex, but does not entail as many factors, variables,
challenges, and risks as domestic strategic planning. - Answer False
If domestic markets become saturated, the firm may need a larger customer base to maintain? -
Answer Economies of scale
Organizations must ensure that they do not plan hurriedly or rush into foreign markets to jump
on an opportunity for quick cash. - Answer True
What are the two types of business entry modes available into a market? - Answer Low
intensity: No investment into the new market; high intensity: Significant amounts of investment
in the market
The three questions especially important to international expansion are location, timing, and
scope. - Answer False
A primary characteristic of the globalization of markets is the advent of the__________. -
Answer Global Consumer
Addresses issues that may impact global business operations, such as climate, weather,
geographical location, global changes in climate, environmental offsets. - Answer
Environmental concerns
Direct market accession offers a firm low risk, gives them a simple way to initiate the process of
entering a global market, and helps the firm meet demands and challenges. - Answer True
, The key factors that influence the entry mode selection include all except? - Answer
Production and labor costs
Small markets support entry modes that have low break-even sales volumes, like indirect or
agent exporting, licensing, and some contractual arrangements. - Answer True
_____________ is a significant contributor to the positional advantage of the company and is
related to the long-term, overall firm performance - Answer Market Orientation
PESTLE analysis can provide answers to the following specific global market entry questions. -
Answer Political, Economic, Social, Technological, Legal, Environment.
In most cases, exporting and importing requires a minimum initial investment and may allow a
business to develop key relationships with export/import firms (intermediaries) that will aid in
ensuring success into the new market. - Answer True
Which is not a vital consideration for determining managerial commitment to expanding
globally? - Answer Managements timeframe/timeliness for the international operations to pay
off
Joint ventures usually involve an alliance where two or more companies contribute assets,
which results in the formation of a new legal entity. - Answer True
_____________ are utilized to provide expertise to inexperienced exporters as they enter
overseas markets. - Answer Intermediaries
A franchise is an agreement that allows one party to use a property right in exchange for
payment to the other party. - Answer False
These variables include the legal system, political structure, and the business customs unique to
that nation. - Answer Openness to global trade
The investigation of opportunities for domestic expansion requires the careful consideration of
various business-environment conditions including the identification of unique resources and
capabilities that may be offered. - Answer True
