CHAPTER 3: ENTRY STRATEGY AND STRATEGIC ALLIANCES

20 câudễ:
1. Which of the followings represents the definition of Market Strategy ?
A. A planned distribution and delivery method of goods or services.
B. Management of contracts in a foreign country.
C. In the import and export of services, it refers to the creation, establishment.
D. All are correct

2. Which of the followings represents the definition of Strategic Alliances

A. Is an agreement between two or more parties.
B. To pursue a set of agreed upon objectives needed.
C. Also known as Strategic Partnership
D. All are Correct

3. What are three basic decisions a firm contemplating foreign expansion must make?
A. Which market to enter
B. When to enter those markets
C. On what scale
D. All arecorrect

4. Which is the answer for choosing foreign markets ?

A. Must be based on an assessment of a nation’s long run potential profit
B. Based on potential profit
C. Any country as long as it’s potential profit
D. All are correct

5. Attractiveness of a country as a potential market for an international business

depends on balancing of...... ?
A. Benefits, Costs
B. Benefits, Risks
C. Costs, Risks
D. Benefits, Costs, Risks

6. Whichis an advantages frequently associated with entering a market early ?

 A. The ability to preempt rivals and capture demand by establishing a strong brand
name.
B. The ability to build sales volume in that country and ride down the experience
curve ahead of rivals, giving the early entrant a cost advantage over later entrants.
C. The ability of early entrants to create switching costs that tie customers into their
products or services.
D. All are correct

7. Fill the blank: “Once attractive markets have been identified, it is important to
consider....”
A. Research the markets
B. Timing to entry
C. Determind the profit potential
D. All arecorrect

8. Timing Entry depends on what factors ?

A. The type of product.
B. The particular market.
C. The amount of competition and the budget available.
D. All is correct

9. How many advantages if a firm entering a market early ?

A. 1
B. 2
C. 3
D. 4

10. What does pioneering costs include ?

A.Costs of promoting
B. Costs of establishing a product offering
C. Costs of educating customers
D. All are correct

11. Which is true about large scale entry ?

A. Requires commitment of significant resources and implies rapid entry
B. May cause rivals to rethink market entry
C. May lead to indigenous competitive response
D. All are correct
12. Fill the blank : “ Not all firms have....to enter on a large scale ”
A. Resources necessary
B. Money
C. Costs
D. Benefits

13. What is true about small scale entry ?

A. Allows a firm to learn about a foreign market while limiting the firm’s exposure to
the market
B. Giving the firm time to collect information
C. Reduces the risks associated with a subsequent large scale entry
D. All are correct

14. What is true about strategic commitments ?

A. Strategic commitments are decisions/strategies that have long-term impact and are
difficult if not impossible to reverse
B. Strategic commitments can have a profound effect on your competitor’s decisions
C. Strategic commitments can affect choices made by rivals
D. All are correct

15. The large-scale entrant is more likely than the small-scale entrant to be able to
capture... ?
A. First-mover advantages
B. Risks
C. Information
D. Rivals

16. Which of following answers belong to entry modes ?

A. Exporting
B. Licensing
C. Franchising
D. All arecorrect

17. Which of following statements is true about Exporting’s advantages ?

A. Avoids the often substantial costs of establishing manufacturing operations in the
host country.
B. Exporting may help a firm achieve experience curve and location economies.
C. A and B.
D. None is correct.
 18. How many distinct advantages that exporting has ?
A. 1
B. 2
C. 3
D. 4

19. How many disadvantages of Exporting that mentioned in Chapter 14 (textbook) ?

A. 1
B. 2
C. 3
D. 4

20. How many main drawbacks are associated with a turnkey strategy ?
A. 1
B. 2
C. 3
D. 4

20 câutrungbình
1. Fill the blank: “Entering a foreign market before other international businesses can
also have....”
A. Disadvantages
B. Competitors
C. Risks
D. All are correct

2. What is these disadvantages may give rise when entering a foreign market before
other IB?
A. Risks
B. Pioneering costs
C. Imflationary (lạmphát)
D. All are correct

3. How many modes to enter foreign markets ?

A. 4
B. 5
C. 3
D. 6
4. Which of following answers does not belong to entry modes?
A. Exporting
B. Licensing
C. Turnkey projects
D. Importing

5. Which one is not three main drawbacks associated with a turnkey strategy ?
A. The firm that enters into a turnkey deal will have no long-term interest in the
foreign country.
B. The firm that enters into a turnkey project with a foreign enterprise may
inadvertently create a competitor.
C. the firm’s process technology is a source of competitive advantage, then selling this
technology through a turnkey project is also selling competitive advantage to
potential and/or actual competitors.
D. A turnkey strategy can also be less risky than conventional FDI.

6. What is the problem that any firms planning ro expand abroad first has to contend
with ?
A. Which foreign markets to enter
B. The timing of entry
C. The scale of entry
D. All are correct

7. What the choice of which markets to enter should be motivated by ?

A. The evalution of growth potential
B. The evalution of relative long-term profits
C. All are correct
D. All are incorrect

8. The various mode for serving foreign market is:

A. Not licensing, frachise for host-country firms
B. Establishing joint ventures with a host country firm
C. A & b are correct
D. A & b are incorrect

9. How can the firms realize substantial scale economies from its global sales volume
?
A. Manufacturing the product in a centralized location
B. Exporting the product to other national markets
 C. A &b are correct
D. A & b are incorrect

10. What are the disadvantages of exporting ?

A. Exporting from the firms home may not be appropriate if lower-cost
locations for manufacturing the product can be found abroad.
B. High transport cost can make exporting uneconomical
C. Tariff barriers can make exporting uneconomical
D. All are correct

11. With ‘’TURNKEY PROJECT’’, the general contractor performing:

A. Project formulation
B. Training the contigent of officials and worker
C. Installation of construction
D. All are correct

12. How many major drawback are associated with a turnkey strategy ?
A. 2
B. 3
C. 4
D. 5

13. Intangible property includes:

A. Patents, Inventions, formulas
B. Processes, designs
C. Copyrights, trademarks
D. All are correct

14. What are the main advantages of licensing ?

A. The firms does not have to bear the development costs and risks
associated with opening a foreign market
B. The firms bears low costs and risks associated with opening a foreign
market
C. The licensing puts up most of the capital necessary
D. All are correct.

15. How many serious drawbacks is there in licensing ?

A. 1
B. 2
C. 3
 D. 4

16. How can a service firm build a global presence quickly ?

A. Franchising
B. Licensing
C. Both are true
D. Both are wrong

17. To increase the probability of selecting a good partner, the firm should:
A. Collect as much pertinent, publicly available information on potential allies
as possible.
B. Gather data from informed third parties.
C. Get to know the potential partner as well as possible before committing to
an alliance.
D. All are correct

18. How many mode of entering a foreign market ?

A. 3
B. 4
C. 5
D. 6

19. The success of an alliance seems to be a function of factor:

A. partner selection,
B. alliance structure
C. the manner in which the alliance is managed.
D. All are correct

20. Exporting has the disadvantages:

A. high transport costs,
B. trade barriers
C. problems with local marketing agents.
D. All are correct.

10 câukhó:
1. Which one below is a typical licensing agreement ?
A. A licensing agreement is a legal contract between two parties, known as the
licensor and licensee.
B. Licensing agreement create the partnership
 C. Licensing agreements delineate the terms under which one party may use
property owned by another party
D. licensing agreement often depends on the nature of the product

2. Which one is common between franchasing and licensing ?

A. Royalty payments
B. Support and training
C. Registration
D. Governed by

3. Which one below is not the common type of joint venture ?

A. Limited co-operation. This is when you agree to collaborate with another
business in a limited and specific way
B. Separate joint venture business
C. Business partnerships
D. Establishing a wholly owned subsidiary in a foreign market can be done in
two ways

4. Which one below is not the disadvantage of wholly owned subsidiaries ?

A. Disadvantages include the possibility of multiple taxation, lack of business
focus, and conflicting interest between subsidiaries and the parent
company
B. does not give a firm the tight control over subsidiaries that it might need to
realize experience learning curve or location economies
C. One way around this disadvantage is to set up a subsidiary in each country in
which the firm expands
D. None is correct

5. Entering a market on a large involves _ of significant resouces and_ rapid entry.**

A. Benefit & process
B. Commitment & implies
C. Benefit & implies
D. Commitment & process

6. What are Turnkey project’s advantages ?

A. Cost savings
B. Earning great economic returns
C. A & b are correct
D. A & b are incorrect
 7. The advantages of strategic alliances:
A. Strategic alliances may facilitate entry into a foreign market.
B. An alliance is a way to bring together complementary skills and assets that
neither company could easily develop on its own.
C. It can make sense to form an alliance that will help the firm establish
technological standards for the industry that will benefit the firm.
D. All are correct

8. Two keys to making alliances work seem to be … and informal communications

networks between partners and taking proactive steps to learn from alliance
partners.
A. building trust
B. expanding
C. maintaining
D. all are incorrect.

9. By entering into an allian with Fujitsu, how many goals does Cisco feel ?
A. 2
B. 3
C. 4
D. 5

10. Which of the following is a disadvantage of establishing a greenfield venture ?

A. It does not give the firm the freedom to build the kind of subsidiary company
that it wants.
B. Firm will face difficulties in building a certain organizational culture in
greenfield ventures.
C. The degree of uncertainty is associated with future revenue is more in
greenfield ventures.
D. Firm will face difficulties in implementing new procedures in a greenfield
ventures.

1. Initially. what is the strategic role of foreign factories ?

A. Produce labor-intensive products at as low a cost as possible

B. Produce labor-intensive products at as high a cost as possible
C. Become important centers for the design and final assembly of product
D. Expand the market
2.Logistics activities in the economy of a country?
A. impact on economic integration capabilities
B.Support the flow of economic transactions
C. Logistics efficiency guide to increase competitiveness
D. All are correct
3. What are the stages of logistics?
A. distribution logistics,logistics system,supply chain management
B. distribution logistics, supply chain management, logistics system
C. logistics system, supply chain management, distribution logistics
D. logistics system, distribution logistics, supply chain management
4. How many basic strategic choice of location production?
A. 2
B. 3
C. 4
D. 5
5. What are the advantages of buying from independent suppliers?
A. Give businesses more flexibility.
B. Help reduce the cost structure of businesses.
C. Help businesses win orders from international customers.
D. All are correct
6. Why does the product is purchased from independent suppliers can avoid the costs incurred?
A. The company thus will have less units under management, less popular more details,
maintain effective product if you want to continue to cooperate, do not survive
transfer pricing issues.
B. lower Directive companies produce
C. Regular promotional packages.
D. The product is made from cheap materials so inexpensive
7. JIT stands from what?
A. Just in town
B. Just in tool
C. Just in time
D. Jump in to
8. What are the conditions to avoid the risk of strategic inflexibility?
A. Invest in highly specialized products and Protection of proprietary technology.
B. Create dynamic competencies over time if you want to continue internal activities within the
company.
C. The company carrying out these activities must be more efficient than independent suppliers.
D. All are correct
9. What is one example of the offset?
A. The Government of India requested transfer 1 Job Boeing subcontractor for
manufacturers of India.
B. Canon copier manufacturer to sell Kodak.
C. Flextronics manufacturing for Microsoft Xbox.
D. alliance between Boeing with 1 several Japanese companies to produce civil jet.
10. “... is a computer-to-computer exchange of business documents in standard electronic format
between business partners”. Complete the sentence
A. Foreign Direct Investment (FDI)
B. Electronic data exchange (EDI)
C. Just-in-time (JIT)
D. Research & development (R & D)
11. What year is EDI used?
A.1982
B. 1983
C.1985
D. 1990
12.What are advantages of buy ?
A.Strategic Flexibility,Lower Costs,Offsets
B. Strategic Flexibility, Improving Scheduling,Offsets
C. Lower Costs,Offsets, Protecting Proprietary Product Technology
D. Lower Costs, Improving Scheduling,Strategic Flexibility
13. What are the benefits of EDI?
A.Cost savings for businesses
B.The speed and accuracy of transactions
C. Increase business efficiency
D.All are correct
14 Which of the following is not an advantage of buying from independent suppliers?
a. It gives the firm greater flexibility
b. It hleps drive down the firm’s cost structure
c. It protects proprirtary
d. It help the firm to capture orders from international customers
15The benefits of manufacturing components in-house are greatest when:
a. Highly specialized assets are involved
b. Vertical intergration is necessary for protecting proprietary technology
c. The firm is more efficient than external suppliers at performing a partucular activity
d. All answer correct
16Fill blank: __________ ______ are important factors in many firms’ manufacturing
strategies.
a. Make-or-buy decisions
b. Internationa markets
c. Domestic market
d. All answer correct
17Improment in a facility comes from __ sources?
a. 1
b. 2
c. 3
d. 4

18When ____, firms will favor decentralized production.

a. Trade barriers are high
b. Fixed cost are high
c. The product’s value-to-weight ratio is high
d. Exchange rates are volatile
19. Currency appreciation can transform a low-cost into a
a. High-cost location
b. Attractive location
c. Effective location
d. High value location
20. What makes the being too dependent on one location is particularly risky in a world?
a. Floating exchange rates
b. Political economy
c. Proprietary product technology
d. Manufacturing practice
21. Which one is incorrect?
The term flexible manufacturing technology – or lean production, as it is often called – covers a
range of manufacturing technologies designed to:
a. Reduce setup times for complex equipment
b. Increase the utilization of individual machines through better scheduling
c. Improve quatility control at all stages of the manufacturing process
d. Use the flexible of manufacturing technology to reconcile two goals that were thought be
incompatible- low cost and product customization
22. Which is an answer of factors for a business to decide to choose production location?
A. Regulations affecting FDI
B. Technological factor,country factor and product factor.
C. Activities involved in making a product.
D. All is incorrect
23. Firms should locate production so that:
A. Production and logistics can respond quickly to shifts in customer demand
B. Production and logistics can be locally responsive
C. Both A&B are correct
D. Both A&B are incorrect
24. How many factors affect on dicision of product location?
A. 2
B. 3
C. 4
D. 5
25. Technological factors include any of the following?
A. An alternative means of structuring an international sale when conventional means of
payment are difficult, costly, or nonexistent.
B. The level of fixed costs
C. The availability of skilled labor and supporting industries
D. The level of fixed costs,minimum efficient scale and flexibility of technology.

26. Production should be concentrated in a few locations when:

A. Fixed costs are substantial,the minimum efficient scale of production is high and
flexible manufacturing technologies are available.
B. Defining each facility's strategic role, determining location for each facility and identifying
market that each facility will serve.
C. Offshore factory, source factory, server factory, contributor factory, outpost factory, lead
factory
D. None of the are correct
27. Production in multiple locations makes sense when:
A. Both fixed costs and the minimum efficient scale of production are relatively low.
B. Appropriate flexible manufacturing technologies are not available
C. Both A&B are correct
D. Both A&B are incorrect
28. How many product factors impact location decisions?
A. 1
B. 2
C. 3
D. 4
29. What is the value to weight ratio of the product?
A. Plant that imports or acquires locally all components and then exports the finished product
B. Imports or obtains materials locally, and then exports products to parent company or directly
to customers
C. If the value-to-weight ratio is high, produce the product in a single location and export
to other parts of the world/If the value-to-weight ratio is low, there is greater
pressure to manufacture the product in multiple locations across the world
D. ow cost manufacturer; set up in markets with low labor costs and lower material costs
30. The “term flexible manufacturing technology or lean production” as it is often called covers
a range of manufacturing technologies designed to:
A. Reduce setup times for complex equipment
B. Increase the utilization of individual machines through better scheduling
C. Improve quality control at all stages of the manufacturing process
D. All of them are correct
31.______ allow the company to produce a wider variety of end products at a unit cost that at
one time could be achieved only through the mass production of a standardized output.
A. Manufacturing Facilities
B. Firm's developed technologies
C. Flexible manufacturing technologies
D. Procurement/supply management
32. The term _______ has been coined to describe the ability of companies to use flexible
manufacturing technology to reconcile two goals that were once thought to be
incompatible—low cost and product customization.Flexible manufacturing technologies
vary in their sophistication and complexity.
A. Mass customization.
B. Flexible machine cells.
C. Religious and Ethical Systems
D. The Promise and Pitfalls of Exporting
33. how many regional markets established "top-to-bottom" manufacturing operations?
A. 1
B. 2
C. 3
D. 4
34 Which regional markets established "top-to-bottom" manufacturing operations?
A. Asia, Africa, South America
B. Asia, North America, Southern Europe
C. Asia, North America, Western Europe
D. Australia, Asia, Africa.
35. Which factor influence the production locating facilities?
A. Climate change
B. Connection within the nation locate
*C. Product
D. Geographic
36. Which is the factor of the advantages of make?
a. Lowering costs
b. Locating product facilities
c. The weather
d. Suppliers
37. If the propriertary product technology is spoilt, which prolems will happen?
a. The technology will be sold to the firm’s competitors
b. Nothing will happen
c. The firm will develop more faster and stronger
d. The firm will create another

38.Concentrated production makes sense when?

a. Minimum efficent scale is high
b. Location externalities are not important
c. The product does not serve universal needs
d. There are few trade barriers

39. Increasing productivity because time is not wasted producing poor-quality products that
cannot be sold, leading to a direct reduction in unit costs
b. Lowering rework and scrap costs associated with defective products
c. Reducing the warranty costs and time associated with fixing defective products
d. All are correct
40. The principal tool that most managers now use to …….. the …… of their product
offering is the Six Sigma quality improvement methodology.
a. Increase/reliability
b. Decrease/realiability
c. Increase/quality
d. Decrease/quality
41. Which one is the reason of making a nation unattractive to be a manufacturing base?
a. Exchange rate
b. Trade barriers
c. Population
d. A&B are correct
42. There are two basic strategies for locating production facilities. What are they?
a. Concentration of production and decentralization of production
b. Concentration of production and product optimization
c. Decentralization of production and product optimization
d. None of these
43. The reason of the strategic role of foreign factories arises are:
a. Many foreign factories upgrade their own capabilities
b. They have the propriertary product technology of competitors
c. They have support from IMF
d. The mechanic of exporting has been improved
44. What factors are not important when making location decisions?
a. Country factors
b. Technological factors
c. Product factors
d. Insurance factors
45. What are characteristics of a manufacturing technology are of interest?
a. The level of fixed cost
b. The minimum efficient scale
c. The flexibility of technology
d. All are correct
46. Which one is incorrect :
Firm should produce in multiple locations when:
a. Fixed cost are high
b. Trade barriers are high
c. The minimum efficient scale of production is low
d. Flexible manufacturing technology is not avalible
 47.Two product features affect location decisions are:
a. Product’s value-to-weight ratio and the product serves is universal needs.
b. Product’s value-to-weight ratio and cost of transport.
c. Product’s value-to-weight ratio and product’s convenience.
d. Cost of transport and product’s convenience.
48. Which is the advantage of buy?
a. Offsets.
b. Improving Scheduling.
c. Protecting Proprietary Product Technology.
d. None of these.
49.Decentralization of production makes sense when?
a. The product does not serve universal needs
b. The product serves universal needs
c. Trade barriers are low
d. None are correct
50. Which of the following is appropriate for concentration of production?
a. Low value-to-weight ratio.
b. High trade barriers.
c. Flexible manufacturing technology exists.
d. Low minimum efficient scale.
MULTIPLE CHOICE QUESTIONS: ASSIGNMENT CHAPTER 5
Group 3
1. How many ways can Markets be segmented?
A. 1
B. 2
C. 3
D. 4
2. How many factors are there that impact to Product Attributes in international business?
A. 1
B. 2
C. 3
D. 4
3. The main factors that impact to Product Attributes include:
 A. Cultural Differences
B. Economic Development
C. Product and Technical Standards
D. All A, B, C are correct
4. What do you need to consider when you designthe market segmentation in a different country?
A. The differences between countries in the structure of the market segment.
B. The existence of segments that transcend national borders.
C. Both A&B are correct
D. Both A&B are incorrect
5. What is the most important aspect of cultural differences?
A. Tastes
B. Tradition
C. Preferences
D. History
6. Countries’ culture differ along a whole range of dimensions, including:
A. Social structure, language, economy, and education
B. Social structure, language, religion, and education
C. Language, religion, education, and politic
D. Language, education, economy, and politic
7. The goal of market segmentation is to ________ the fit between the purchasing behavior of
consumers in a given segment and the marketing mix, thereby ________ sales to that
segment.
A. Optimize/ maximizing
B. Maximize/ minimizing
C. Optimize/ minimizing
D. Maximize/ optimizing
8. The effective of a firm’s international communication can be threatened by ___ potentially
critical variables.
A. 2
B. 3
C. 4
D. 5
9. What is the best way for a firm to overcome cultural barriers?
A. Develop cross-cultural literacy
B. Develop traditional literacy
C. Develop a history of international literacy
D. Develop policies literacy
10. When the receiver of a message (i.e. the potential customer) evaluates a message based on
the status or image of the sender, ______ are said to have occurred.
A. sender effects
B. noise effects
C. source effects
 D. communications effects
11. When a firm emphasizes personal selling rather than mass media advertising in the
promotional mix, the firm is using a:
A. push strategy
B. pull strategy
C. standardized strategy
D. localized strategy
12. A pull strategy _______________________________________
A. Depends more on mass media advertising to communicate the marketing
message to potential consumers.
B. Emphasizes personal selling rather than mass media advertising in the promotional
mix.
C. Both A & B are incorrect
D. Both A & B are correct
13. Factors that determine the relative attractiveness of push and pull strategies include:
A. Product type relative to consumer sophistication, channel length, and media
availability.
B. Product type relative to consumer sophistication, channel short, and distribution
availability.
C. Product type relative to consumer sophistication, distribution channel length, and
promotional strategy.
D. Product type relative to consumer sophistication, distribution channel length, and
cheap price.
14. Consumers in highly developed countries value______ as compared to their counterparts in
less developed nations.
A. price
B. product reliability
C. product attributes
D. choices
15. How many conditions are necessary for profitable price discrimination?
A. 2
B. 3
C. 4
D. 5
16. How do price elasticitiy change in low-income countries?
A. Tends to be smaller
B. Tends to be greater
C. Constant
D. Little change
17. Which aspects of pricing may violate anti-dumping regulations?
A. Predatory Pricing and Multipoint Pricing Strategy
B. Multipoint Pricing Strategy and Experience Curve Pricing
C. Predatory Pricing and Experience Curve Pricing
D. Predatory Pricing, Multipoint Pricing Strategy and Experience Curve Pricing
18. When does dumping occur?
A. Whenever a firm sells a product for a price that is less than the cost of
producing it.
B. Whenever a firm sells a product for a suitable price.
C. Whenever a firm sells a product for a price that is equal to the cost of producing it.
D. All A, B, C are incorrect
19. The price elasticity of demand is:
A. A measure of the responsiveness of demand for a product
B. A measure of the responsiveness of demand for a product to unchanged in price
C. A measure of the responsiveness of demand for a product to change in price
D. All A, B, C are incorrect
20. Demand is said to be______when a large change in price produces only a small change in
demand.
A. Elastic
B. Inelastic
C. Limited
D. Unlimited
21. What are most important things in determining the elasticity of demand for a product in a
country?
A. Income level and competitive conditions
B. Income level and population
C. Population and competitive conditions
D. Cultural and population
22. Multipoint pricing refers to the fact that a firm’s ____________ in one market may have an
impact on its rivals’ pricing strategy in another market.
A. Distribution strategy
B. Communication strategy
C. Pricing strategy
D. Another answer
23. A firm’s freedom to set its own prices is constrained by:
A. Antidumping regulations and competition policy.
B. Policy of government and company regulation.
 C. Both A&B are correct
D. Both A&B are incorrect
24. Antidumping rules set a floor under _______ and limit firms’ ability to pursue _________.
A. Goods – profit
B. Materials - strategic pricing
C. Goods - strategic pricing
D. Export prices - strategic pricing0

25. Which of the followings is not a part of the marketing mix?

A. product attributes
B. communication strategy
C. market segmentation
D. distribution strategy
26. When a channel is exclusive_____
A. it carries only high - end products
B. it is controlled by market leaders
C. it focuses on elite customers
D. it is difficult to access
27. ______ between firms stimulates innovation as the firms try to beat their competitors and
reap potentially enormous first-mover advantages that result from successful innovation.
A. Intense conflict
B. Intense competition
C. Intense contrariety
D. Intense discrepancy
28. What is the core function involved in developing new products?
A. Marketing, PR, Price
B. PR, Place, R&D
C. Promotion, Production, Money
D. R&D, marketing and production
29. Why does a firm develop new products?
A. To attract more customers
B. To dominate the market
C. To earn enormous returns
D. To maximize profit
30. The set of choices the firm offers to its targeted market is known as the:
A. marketing mix
B. product mix
C. product line
D. market promotion
31. Building global R&D capabilities is the stage of:
 A. New-product development
B. Pricing strategy
C. Marketing mix
D. Communication strategy
32. New product development stage in which concept is tested whether idea has strong appeal is
called:
A. Material testing
B. Concept development
C. Concept testing
D. Market screening
33. A push strategy is appropriate when ____________.
A. there are many choices of electronic media
B. when distribution channels are long
C. the firm is selling industrial products
D. when the firm is selling consumer goods
34. Why could a new product development of a firm have a high failure rate although the firm
may earn enormous returns?
A. development of a technology for which demand is limited
B. failure to adequately commercialize promising technology
C. inability to manufacture a new product cost - effectively
D. All A, B, C are correct
35. What are the benefits when a company design with manufacturing
requirements in mind?
A. Higher costs and increase product quality
B. Lower costs and decrease product quality
C. Lower costs and increase product quality
D. Higher costs and decrease product quality
36. What is a cross-functional team?
A. A group of people who try their best to develop the company
B. A group with different functional expertise working toward a goal
C. A group of experienced people working in a long time for the company
D. A group of people who try their best to function the company
37. Which country is the pioneer of some of the most advanced applications of wireless
telecommunications services?
A. The United States
B. China
C. Finland
D. Viet Nam
38. Automobile companies tend to use _______ segmentation.
A. socioeconomic
B. geographic
C. personality
 D. educational
39.Research has maintained that a major factor of success for new products is the closeness of
the relationship between:
A. finance and marketing
B.marketing and R&D
C. finance and materials management
D. operations and R&D
40. What is the solution adopted by many international businesses for allocating product
development responsibilities to various centers?
A. Establishing a global network of R&D centers
B. Creating a national network of marketing centers
C. Building a PR strategy for each country
D. All A, B, C are correct
41. Tight cross-functional integration can help a company ensure that:
A. Time to market is maximized
B. New products are designed for ease of manufacture
C. Easy market entry strategy
D. All A, B, C are correct
42. How many main differences between the distribution system?
A. 1
B. 2
C. 3
D. 4
43. A ______ retail system is one in which there are many retailers, no one of which has a major
share of the market.
A. concentrated
B. consolidated
C. focused
D. fragmented
44. In a ______ retail system, a few retailers supply most of the market.
A. concentrated
B. dispersed
C. focused
D. fragmented
45. A country with high car ownership, a large number of households with refrigerators, and a
large number of two income families tend to have:
A. retail crowding
B. retail dispersion
C. retail concentration
D. retail fragmentation
46 The means of delivering the product to the consumer is known as the:
A. delivery strategy
B. marketing mix
C. logistics strategy
D. distribution strategy
47. What is the most important determinant of channel length?
A. Channel exclusivity.
B. The number of channels
C. Chanel quality
D. The degree to which the retail system is fragment.
48. What is the factor shortening channel length in some countries?
A. the entry of large discount superstores
B. Chanel quality
C. Channel exclusivity.
D. Number of channels
49. Which of the followings does not affect a firm’s international communication?
A. cultural barriers
B. source effects
C. channel exclusivity
D. noise levels
50. The extent to which the place of manufacturing influences product evaluations is known as:
A. source effects
B. country of origin effects
C. noise effects
D. location effects
Group 5

1) The three types of staffing policies in international businesses are ________.

A) Ethnocentric, polycentric, and geocentric.
B) Ethnocentric, intercentric, and monocentric
C) monocentric, neocentric, and polycentric
D) intracentric, geocentric, and neocentric

2) A(n) ________ staffing policy framework designates home-country nationals for the key
management positions
A) Polycentric
B) Intercentric
C) Ethnocentric.
D) Geocentric

3) Which of the following is NOT a drawback of the polycentric approach?

A) Limitation of opportunities for host-country nationals leads to resentment
B) Language and cultural differences between parent company and subsidiaries
C) It always asks for more supply.
D) Isolation creates groups of subsidiaries with only nominal links to the headquarter

4) The staffing policy at Hanover International is to seek the best people for key jobs throughout
the organization, regardless of nationality. Hanover most likely follows a(n) ________
staffing approach.
A) Geocentric.
B) Intercentric
C) Polycentric
D) Ethnocentric

5) Which of the following is a disadvantage of the geocentric approach?

A) The cost of training and relocation for expatriate is usually high.
B) The conflict among managers as they have different ideas
C) The misunderstandings between employers and employees
D) The differences of mindset within a firm

6) What is the primary advantage of using an ethnocentric staffing policy?

A) Minimizing relocation costs
B) Developing community support
C) Transferring core competencies abroad.
D) Encouraging innovative business practices
7) What was the common reason for expatriate failure among The U.S, European and Japanese
multinationals?
A) Healthcare service
B) Salary agreement
C) Inability of spouse to adjust.
D) Language barrier
8) What was the main reason for expatriate failure among Japanese multinationals?
A) Other family problems
B) Manager’s inability to adjust
C) Inability of spouse to adjust
D) Inability to cope with larger overseas responsibilities.
9)Dimensions for expatriate selection are…
A) Self-orientation & Others-orientation
B) Perceptual ability & Cultural toughness
C) Self-orientation, Others-orientation, Perceptual ability & Cultural toughness.
D) Perceptual ability & Self-orientation
10) ______- to understand the particular behavior of people in host countries,empathise
A) Self-orientation
B) Others-orientation
C) Perceptual ability.
D) Cultural toughness
11) _____- The expatriate must have the ability to interact effectively with host country‘s
nationals
A) Self-orientation
B) Others-orientation.
C) Perceptual ability
D) Cultural toughness

12) In others-orientation, if an expatriate is not fluent in communication…

A) He/she is definitely not qualified
B) He/she can try to show the willingness to communicate.
C) He/she will lose the current job
D) He/she will earn less than other manager

13) Types of allowances in an expatriate’s compensation package are often included

A) Hardship Allowances
B) Hardship Allowances & Housing Allowances
C) Education Allowances & Cost-of-living Allowances
D) B&C.
14) What is issue raised in every discussion of compensation practices in an international
business?
A) How compensation should be adjusted & compensation practices.
B) How expatriate managers should be paid.
C) A and B are correct.
D) A and B are incorrect
15) Hardship allowance is paid when…
A) The basic amenities are deficient by the home-country standard.
B) Expatriates feel difficult in making relationship
C) Expatriates have finished their assignment
D) The parent company wants to foster expatriates’ performance
16) The typical expatriate compensation package has 5 components except_____
A) Commission.
B) Base salary
C) Foreign Service premium
D) Allowances
17) Why a firm from The United State pursuing geocentric staffing policy is unwilling to pay its
employees according to The US standard?
A) It would make the American managers feel unfair
B) It would cost too much.
C) Both are correct
D) None of them
18) What is the main concern of labor organization?
A) The company can counter its bargaining power.
B) An international business will keep HST in its country & farm out LST to foreign plants
C) An international business tries to import employment practices and contractual agreements
D) All are incorrect
19) Which of the following is not included in the 3 actions that have been taken by organized
labor?
A) To establish international labor organizations
B) To cooperate with multinationals.
C) To lobby for national regulations
D) To achieve international regulations on multinationals
20) What is the ITSs (international trade secretariats) purpose?
A) To bargain transnationally with multinational firms.
B) To forbid an enterprise operating in its country
C) To provide worldwide links to national unions in particular industries
D) To close down an multinationals opposing its rules
21) What is the trend in labor organization activities at the moment?
A) Decentralized
B) Centralized.
C) Both A&B are correct
D) Both A&B are incorrect
22) What is ITSs able to do?
A) To be able to bargain transnationally with multinational firms
B) To provide worldwide links for national unions in particular industries.
C) Lobbying for national legislation to restrict multinationals
D) Trying to achieve international regulations on multinationals through such organizations as
the United Nations
23) What make the ITSs unable to reach to its real success?
A) There are not many unions participate in
B) There are competitions among unions.
C) Unions do not follow the rules of the ITSs
D) The ITSs has taken no real actions
24) One essential task of the HRM function is to…
A) Make employees work overtime
B) Foster harmony and diminish the conflict between firm and organized labor.
C) Deceive workers with tricks
D) Make employees work under coercion
25) What is the ONLY success that organized labor achieves?
A) Began to establish international trade secretariats
B) Its efforts to get national and international bodies to regulate multinationals.
C) Trying to establish international labor organizations
D) In attempting to gain new jobs for their members
26) Where does the bargaining power of labor unions come from?
A) Derived largely from their ability to threaten to disrupt production
B) A strike
C) Refusing to work overtime
D) A, B & C are correct.
27) What is not the concern of the labor organization?
A) The company can counter its bargaining power with the power to move production to
another country
B) An international business will keep highly skilled tasks in its home country and farm out
only low-skilled tasks to foreign plants
C) An international business attempts to import employment practices and contractual
agreements from its home country
D) The wide variation in union structure.
28) When was the international trade secretariat set up?
A) In 1950s
B) In 1960s.
C) In 1970s
D) In 1980s
29) What is the purpose of training and management development?
 A) Developing managerial skills
B) Increasing business productivity for businesses
C) Creating promotion opportunities for managers
D) All of the above.
30) Three types of training for expatriate managers can enhance the expatriate performance,
such as
A) Cultural training, language training and practical training.
B) Cultural training, professional training and soft-skill training
C) Adaptive training, attitude training and mindset training
D) Practice training, in-house training and local training
31) What is cultural training for?
A) Develop relationships with the people working there.
B) Deal with your partner's inability
C) Increase the understanding of the host country's culture.
D) Both A & C are correct.
32) An important but often overlooked issue in management training and development for
foreign professionals is
A) Repatriation training programs.
B) Create a program to handle situations that occur while working abroad for professionals
C) Support the pressure of experts when preparing to go abroad to work
D) Create an integration session with the staff working in the country where experts are
going to work to exchange experiences
33) What is the worst case for repatriation of professionals working abroad?
A) Scrounge for job
B) Work as a standby position temporarily created by the firm
C) Have no chance to use the knowledge learnt from foreign country
D) All are correct.
34) How many groups evaluate the performance of expatriate managers?
A) 1
B) 2.
C) 3
D) 4
35) Which groups evaluate the performance of expatriate?
A) Host-nation managers
B) Home-office managers
C) Both A&B are correct.
D) Both A&B are incorrect
36) How to reduce bias in the expatriate’s performance appraisal process?
A) Allow on-site manager’s appraisal
 B) Give consultancy to home-office managers
C) A former expatriate who served in the same location involved in the appraisal.
D) All are correct.

37) Which manager’s appraisals may be biased by their own managers’ cultural frame of
reference and expectations?
A) Host-nation.
B) Home-country
C) Both A&B correct
D) Both A&B incorrect

38) Home-country managers' appraisals may be biased by_______

A) Their own cultural frame of reference and expectations
B) Distance and expectations
C) Distance and their own lack of experience working abroad.
D) Their own cultural frame of reference and distance.

39) What is the problem in assessing the competence of foreign experts?

A) Intentional bias
B) Unintentional bias.
C) No problems
D) Both a&b correct

40) Home-office managers tend to rely on ______ in evaluating an expatriate’s performance

A) Hard data.
B) Factors that affect the expatriate performance
C) Comparison to the parent company
D) Former expatriate who worked as the same position

41) Which staffing policy is recommended for Localization Strategy?

a. Ethnocentric
b. Polycentric.
c. Geocentric
d. Ethnocentric and Geocentric
42) Kelly, an American manager, is in a training progress. She is now in Japan to learn about
Japanese practice, culture and mores. What type is this training called?
a. Practical training
b. Cultural training.
c. Language training
d. Professional training
43) Dual-career families have raised the difficulty in expatriate selection since…
a. They do not want to live apart
b. They are busy taking care of their children
c. They are unwilling to sacrifice their own career for their partner.
d. They do not believe in the firm selection
44) Why expatriates find themselves in a dilemma when they come back to their home-country
company?
a. They are used to the foreign environment
b. They are facing with an organization which is incapable of using their knowledge
c. They have family-related issues which negatively affect their performance
d. All are correct.
45) Which was the problem that Unilever faced when they want to change their strategy from
localization to transnational?
a. They could not find qualified managers
b. They received objections from their subsidiaries.
c. They failed in researching the new environment
d. They were afraid of cultural myopia
46) Lenovo chooses managers for key position based on their skills required for working in a
global enterprise. This is…
a. Ethnocentric
b. Polycentric
c. Geocentric.
d. None of them
47) McDonald’s PRS provides guidelines instead of force ranking. How does this affect the
employees’ performance?
a. Employees’ do not have to obey the rules strictly
b. Employees can now work flexibly to match with local environment.
c. Employees would feel even more stressful
d. Employees can have less work hours but still earn the same salary as before
48) Minimum wage regulation is approved in some states in the America. How this would
influence a company?
a. It would raise the compensation cost.
b. It could help the enterprise to hire more employees
c. It could help the firm to earn more profit
d. It does not have much impact on the company
49) What action did Monsanto take in order to solve the problem of expatriate’s spouses?
a. Set up information center for career counseling.
b. Pay them the same salary as the expatriate
c. Persuade them to work for the firm
d. Ask for their sympathy
50) “We like driving the car & we’re not going to give the steering wheel to anyone but us” –
former Wal-mart CEO. This means
a. Wal-mart desperately needed its employees
b. Wal-mart was going to invest in car industry in the future
c. Wal-mart held the bargaining power.
d. The CEO of Wal-mart love travelling

1. How many decisions in Financial Management ?

A.1
B.3
C.2
D.4
2. decisions about what activities to finance?
a. Financing decisions.
b. Investment decisions
c. Money management decisions.
d. All above.
3. decisions about how to manage the firm’s financial resources most efficiently.?
a. Investment decisions.
b. Investment decisions
c. Money management decisions.
d. Money management decisions and Investment decisions.
4. In an international business Why investment, financing, and money management decisions are
complicated ?
a. Because that countries have different currencies, different tax regimes.
b. Because the different regulations concerning the flow of capital across their borders
c.Because the different norms regarding the financing of business activities, different levels of
economic and political risk.
d. All right
5. When evaluating a foreign investment opportunity, the parent should be interested in the cash
flows, Why?
a. because those are the basis for dividends to
stockholders
b. Because Understand the financial situation of the company.
c. because repayment of worldwide corporate debt.
d. all right.
6. When considering its options for financing, How many factors must businesses consider?
a. 1
b.2
c.3
d.4
7. When considering its options for financing, Which of the following factors does the business
consider?
a. how the foreign investment will be financed.
b. how the financial structure of the foreign affiliate should be configured.
c. How cash flow.
d. A and B.
8…..are the cost of exchange.
a. Transaction costs.
b. a transfer fee
c. transaction currency.
d. transnational corporations.
9.what is A fronting loan?
a. is a loan between a parent and its subsidiary channeled through a financial
intermediary, usually a large international bank.
b. is a loan between a parent and its subsidiary channeled through a financial intermediary, no
usually a large international bank.
c. . is a loan between a parent and its subsidiary channeled through a financial intermediary.
d. . is a loan of a parent subsidiary channeled through a financial intermediary, usually a large
international bank.
10. whatis method Which the most common used for transferring funds across borders?
a. Dividend remittances.
B Fronting loans.
c. A and B correct.
d.A and B incorrect.
11. How the company can reduce its tax debts ?
a. by reducing its exposure to foreign exchange risk.
b. by host-country government policies.
c. by using transfer prices to shift earnings from a high-tax country to a low-tax one.
d. all above.
12. …….....can be used to position funds within an international business?
a. Transfer prices.
b. A fee.
c. Royalties.
d. fronting loans.
13. what reason make firms using fronting loans?
a. fronting loans can circumvent host-country restrictions on the remittance of funds from
a foreign subsidiary to the parent company, provide tax advantages.
b. o provide tax advantages.
c. . fronting loans can circumvent host-country restrictions on the remittance of funds from a
foreign subsidiary to the parent company.
d. , the parent company lends cash directly to the foreign subsidiary, and the subsidiary repays it
later.
14. The main goals of financial administration in MNCs is:
A. Maximize consolidated profits
B. Maximize global tax costs
C. Global cash flow management
D. All of the above
15.The capital flow in multinational companies is made by:
A. The parent company with subsidiaries
B. Made by the subsidiaries together
C. A & B are correct.
D. A & B are incorrect
16.Dividend rate that the subsidiary will transfer to the parent company depends on:
A. Capital contribution from the parent company
B. The exchange rate of the home country and the home country
C. Affected by the laws of the country of exchange and exchange control
D. All of the above
17. Factors affecting the volatility of exchange rates are:
A. The difference between the national inflation
B. The difference in interest rates between countries
C. Government intervention
D. All of the above
18. The transfer is made between:
A. Multinational companies together
B. Subsidiaries in 1 multinational company together
C. Subsidiaries together with the parent company in a multinational company together
d. All are incorrect
19. The flow of capital from a subsidiary to its parent company may include:
A. Dividends, interest, royalties
B. Loan interest, royalty fee, support service fee
C. Dividends, interest, royalties, support services fees. '
D. All are incorrect
20. Which of the following is a way that a multinational company can improve its financial
situation?
A. Borrow money from a foreign bank
B. Borrow money from a local bank
C. Borrow money from a profitable company
D. All of the above
21. If a company signs a contract today to buy or sell a property at a predetermined future time,
they will use:
A. Spot exchange rate
B. Flexible rates
C. Future rates
D. Forward rate
22. The rate of spot contracts (Spot) is determined by?
A. Supply-demand relationship of foreign currency
B. Differences in inflation rates between currencies
C. Interest rate differences between currencies
D. Other economic - political factors
23. The exchange rate of the products on the derivative currency market is determined by ?
A. Supply-demand relationship of foreign currency
B. Differences in inflation rates between currencies
C. Interest rate differences between currencies
D. All of the above.

24.The objectives of international financial management are ?

A. Transfer profits from a high tax collecting country to a low tax country
B. Mechanism of capital transfer between subsidiaries
C. Take advantage of resources and opportunities in many different countries and regions
D. All of above

25. How many types of financial risk management ?

A. 2
B. 3
C. 4
D. 5

26. When Multinational Companies (MNC) want to expand their businesses, they can borrow
money from:
A. Holding company
B. Local bank
C. Another subsidiary
D. One of the above

27. How many types of Manage Global Cash Line ?

A. 3
B. 4
C. 5
D. 6

28. Strategies for managing foreign exchange transaction exposure of international trades such
as:
A. Operational techniques strategy
B. Financial contract strategy
C. Both A&B correct
D. Both A&B incorrect
29. To manage transaction exposure, businesses often use how many types of financial contract ?
A. 2
B. 3
C. 4
D. 5

30. Compare the financial performance of MNCs with that of a domestic business:
A. The risk of MNCs is higher due to the impact of international business environments
B. Cash flow management activities in MNCs are more complicated
C. Managing and allocating profits in more complex MNCs
D. All of above

31. In the mechanism of completely floating exchange rate, the exchange rate is determined on
the basis of
A. The law of supply and demand
B. The Government sets prices
C. According to the law of supply and demand, but with government intervention
D. The central bank of that country decides

32. The transfer price is made between:

A. Multinational companies
B. Unrelated companies
C. Subsidiaries in a multinational company t
D. Subsidiary companies with the holding company in a multinational company

33. Price transfer strategies in MNCs are implemented with purpose:

A. Minimize global tax costs
B. Increasing competition among subsidiaries
C. Reduce payment risk from the partners’ subsidiaries
D. Helping the host country to collect taxes the most

34. From a multinational company perspective, which of the following is not the purpose of
transfer pricing ?
A. Minimize tax costs
B. Maximize the consolidated profit after tax
C. Reduce exchange rate risk
D. Motivating and encouraging subsidiaries to operate effectively

35. Factors affecting the volatility of exchange rates:

A. The inflation gap between countries
B. The difference in interest rates between countries
C. Government intervention
D. All of above.

36.The objectives of international financial management are ?

A. Transfer profits from a high tax collecting country to a low tax country
B. Mechanism of capital transfer between subsidiaries
C. Take advantage of resources and opportunities in many different countries and regions
D. All of above
37 .In most cases, How was the company's initial cash flows for a foreign project?
A. Negative because the firm will be investing heavily in production facilities.
B. Negative because of not receiving investment.
C. Positive because the company has a lot of capital.
D. All is incorrect.
38.What are the factors complicating the process for an international business?
A. A distinction must be made between cash flows to the project and cash flows to
the parent company.
B. Political and economic risks, including foreign exchange risk, can significantly
change the value of a foreign investment.
C. The connection between cash flows to the parent and the source of financing
must be recognized.
D. All of the above.
 39. What factors an international businesses must consider when considering its
options for financing?
A. How the foreign investment will be financed.
B. How the financial structure of the foreign affiliate should be configured.
C. A & B are correct.
D. A & B are incorrect.
40. International businesses transfer liquid funds across borders. These include:
E. Dividend remittances, royalty payments and fees, fronting loans, insurance.
F. Dividend remittances, royalty payments and fees, transfer prices, fronting loans.
G. Dividend remittances, transfer prices, fronting loans, insurance.
H. Dividend remittances, royalty payments and fees, fronting loans, insurance.
41. Choosing the wrong sentences.
What are the benefits of Transfer Prices?
A. The firm can reduce its tax liabilities by using transfer prices to shift
earnings from a low-tax country to a hight-tax one.
B. The firm can use transfer prices to move funds out of a country where a
significant currency devaluation is expected, thereby reducing its exposure to
foreign exchange risk.
C. The firm can use transfer prices to move funds from a subsidiary to the parent
company (or a tax haven) when financial transfers in the form of dividends are
restricted or blocked by host-country government policies.
D. The firm can use transfer prices to reduce the import duties it must pay when an
ad valorem tariff.
42. The movement of funds can be between:
A. The firm’s subsidiaries.
B. The parent company and a subsidiary.
C. The firm’s subsidiaries or the parent company and a subsidiary.
D. All are correct.
43. How many techniques for global money management?
A. 1
B. 2
C. 3
D. 4
44. Choose the wrong sentences in the following sentences:
A. Multilateral netting allows a multinational firm to reduce the transaction costs
that arise when many transactions occur between its subsidiaries.
B. Multilateral netting reduces the number of transactions.
C. Multilateral mesh is only used for the transactions between subsidiaries in
the same country.
D. Multilateral netting used for the transactions between multiple subsidiaries
within an international business.
45. Move money across borders to:
A. Reducing Taxes .
B. Using the most efficient source of cash.
C. reduce the amount of cash of the parent company.
D. A and B are correct.
 46. From the bank’s point of view, the fronting loan:
A. Risk free because it has 100 percent collateral in the form of the parent’s
deposit.
B. Risk free because the bank can get any interest rate that they require.
C. Risk because they can lose money if the company goes bankrupt.
D. All are incorrect.
47. Global money management techniques that companies use include ?
A. Centralized depositories.
B. Multilateral netting.
C. A & B are correct.
D. A & B are incorrect.
48. The quantitative process of the various benefits, costs, and risks that can flow
from an investment into a given location is done using:
A. Capital budgeting techniques
B. Minimizing cash balance .
C. Reduce transaction cost
D. Adjusting for economic risk
49. Instead of borrowing money directly from the parent company, the subsidiary
can:
A. Borrow money from the international bank that the parent company deposits
money.
B. Can’tborrow money from other parent companies.
C. Borrow money from fronting loans.
D. A and C are correct.
50.What is the capital budget?
a) quantify the benefits, costs, and risks of an investment.
b) This is the same amount as the donation
c) quantify the benefits, costs
d) risks of an investment